For Hyper Kidz franchises, do franchisee acknowledgement statements act as a release, estoppel, or waiver of liability under the Maryland Franchise Registration and Disclosure Law?

According to Hyper Kidz's 2024 Franchise Disclosure Document, franchisee acknowledgement statements are amended to ensure they do not act as a release, estoppel, or waiver of liability under the Maryland Franchise Registration and Disclosure Law. This amendment clarifies that any representations requiring prospective franchisees to agree to such a release, estoppel, or waiver are not intended to, and will not, have that effect. This protection is specifically designed to safeguard the franchisee's rights under Maryland law.

This provision is beneficial for prospective Hyper Kidz franchisees in Maryland as it prevents them from inadvertently relinquishing their rights under the Maryland Franchise Registration and Disclosure Law through standard acknowledgement statements. This ensures that franchisees retain their legal recourse and protections afforded by Maryland law throughout the franchise relationship.

This type of amendment is particularly important in franchise agreements, which often contain numerous legal clauses and acknowledgements. Without such a clarification, franchisees might unknowingly waive important rights, leaving them vulnerable in potential disputes with Hyper Kidz. This amendment provides a clear assurance that their rights under Maryland law are preserved, regardless of the standard acknowledgement statements they sign.

In addition to this protection, the Hyper Kidz FDD includes a general provision stating that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor. This further reinforces the protection of franchisee rights and ensures that franchisees are not disadvantaged by standard documentation.