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If a prospective franchisee is a resident of Maryland, should they sign the Face Foundrie Franchisee Acknowledgement?

Face_Foundrie Franchise · 2025 FDD

Answer from 2025 FDD Document

THIS DOCUMENT SHALL NOT BE SIGNED BY YOU, AND WILL NOT APPLY, IF THE OFFER OR SALE OF THE FRANCHISE IS SUBJECT TO THE STATE FRANCHISE REGISTRATION/DISCLOSURE LAWS IN THE STATES OF CALIFORNIA, HAWAII, ILLINOIS, INDIANA, MARYLAND, MICHIGAN, MINNESOTA, NEW YORK, NORTH DAKOTA, RHODE ISLAND, SOUTH DAKOTA, VIRGINIA, WASHINGTON, OR WISCONSIN.

DO NOT SIGN THE ACKNOWLEDGEMENT IF THE FRANCHISE IS TO BE OPERATED IN, OR YOU ARE A RESIDENT OF, MARYLAND.

Source: Item 22 — CONTRACTS (FDD pages 73–74)

What This Means (2025 FDD)

According to Face Foundrie's 2025 Franchise Disclosure Document, a prospective franchisee who is a resident of Maryland should not sign the Franchisee Acknowledgement. The document explicitly states that the acknowledgement should not be signed if the offer or sale of the franchise is subject to state franchise registration/disclosure laws in Maryland, or if the franchisee is a resident of Maryland.

This instruction is likely due to Maryland's franchise laws providing certain protections to franchisees. The Franchisee Acknowledgement is designed to determine if any unauthorized statements or promises were made to the franchisee and to ensure the franchisee understands the limitations on claims they can make. However, signing such a document might inadvertently waive rights granted under Maryland's franchise laws.

Furthermore, the FDD includes an addendum specifically for franchisees operating in Maryland. This addendum modifies certain sections of the standard Franchise Agreement to comply with Maryland law, including provisions related to releases, insolvency, forum for litigation, governing law, and limitation of claims. This addendum and the instruction not to sign the Franchisee Acknowledgement highlight the importance of adhering to state-specific franchise regulations to protect the franchisee's rights.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.