Under what conditions would provisions requiring a Healthsource Chiropractic franchisee to disclaim the occurrence of acts that violate the Maryland Franchise Registration and Disclosure Law be considered a release, estoppel, or waiver of liability?

According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, Maryland law protects prospective franchisees from being forced to waive their rights under the Maryland Franchise Registration and Disclosure Law as a condition of purchasing a franchise. Specifically, Section 14-226 of the Maryland Franchise Registration and Disclosure Law prohibits Healthsource Chiropractic from requiring a prospective franchisee to agree to any release, estoppel, or waiver of liability to purchase a franchise.

According to the FDD, any provision that requires a prospective Healthsource Chiropractic franchisee to disclaim the occurrence or non-occurrence of actions that would violate the Maryland Franchise Registration and Disclosure Law to purchase a franchise is not intended to act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. This means that Healthsource Chiropractic cannot include clauses in its franchise agreement that would force a franchisee to give up their legal rights under Maryland franchise law simply to become a franchisee.

In practical terms, this protects potential Healthsource Chiropractic franchisees in Maryland from unknowingly or unwillingly surrendering their legal protections under state law. It ensures that franchisees retain the ability to pursue legal action against the franchisor for violations of the Maryland Franchise Registration and Disclosure Law, regardless of any disclaimers they may have signed as part of the franchise agreement. This provision aims to create a fairer balance of power between the franchisor and franchisee, safeguarding the franchisee's rights and remedies under Maryland law.