In Maryland, are provisions requiring a release, estoppel, or waiver of liability as a condition of purchasing a Face Foundrie franchise intended to act as a release, estoppel, or waiver of any liability under the Maryland Franchise Registration and Disclosure Law?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
To the extent that any provisions of the Franchise Agreement and/or Franchisee Disclosure Questionnaire require you to assent to any release, estoppel or waiver of liability as a condition to your purchasing a Face Foundrié franchise, such provisions are not intended to nor shall they act as a release, estoppel or waiver of any liability under the Maryland Franchise Registration and Disclosure Law.
The following paragraph is added at the end of Item 5:
Based upon the Franchisor's financial condition, the Maryland Securities Commissioner has required a financial assurance. Therefore, all initial fees and payments owed by Franchisees shall be deferred until the Franchisor completes its pre-opening obligations under the Franchise Agreement. In addition, all development fees and initial payments by area developers shall be deferred until the first franchise under the development agreement opens.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION OF THE FRANCHISE RELATIONSHIP (FDD pages 51–59)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, any provisions in the Franchise Agreement or Franchisee Disclosure Questionnaire that require a franchisee in Maryland to release, estop, or waive liability as a condition of purchasing a Face Foundrie franchise are not intended to act as a release, estoppel, or waiver of any liability under the Maryland Franchise Registration and Disclosure Law. This means that even if a franchisee signs documents containing such provisions, those provisions will not prevent the franchisee from pursuing claims under Maryland's franchise law.
This protection is specifically called out in an addendum for Maryland, clarifying the relationship between the franchise agreement and state law. This addendum ensures that franchisees retain their rights and protections under Maryland law, regardless of any potentially conflicting language in the standard franchise agreement.
Additionally, the FDD states that a franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. This reinforces the franchisee's right to seek legal recourse within the state for any violations of the state's franchise law, further protecting their interests and rights as a franchisee.