Does the Maryland Franchise Registration and Disclosure Law prevent Healthsource Chiropractic from including provisions that disclaim acts that would constitute a violation of the law?

According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, the Maryland Franchise Registration and Disclosure Law impacts the franchise agreement. Specifically, Section 14-226 of this law prevents Healthsource Chiropractic from requiring a prospective franchisee to agree to any release, estoppel, or waiver of liability as a condition of purchasing a franchise.

In practical terms, this means that any provisions in the Healthsource Chiropractic franchise agreement that require a franchisee to disclaim the occurrence or non-occurrence of actions that would violate the Maryland Franchise Registration and Disclosure Law are not intended to act as a release, estoppel, or waiver of any liability incurred under that law. This ensures that franchisees retain their rights and protections under Maryland law, regardless of what the franchise agreement might otherwise state.

Furthermore, the FDD includes a Maryland Amendment to the Franchise Agreement to ensure compliance with Maryland law. This amendment clarifies that any general release required of the franchisee does not act as a release, estoppel, or waiver of any liability Healthsource Chiropractic may have incurred under the Maryland Franchise Registration and Disclosure Law. This amendment also specifies that any claims arising under this law must be brought within three years after the franchise is granted and that lawsuits can be brought in Maryland. These stipulations collectively reinforce the franchisee's rights and provide a legal avenue for resolving disputes within the state.