For an Itan franchise, does the Franchise Questionnaire's disclaimer of violations of the Maryland Franchise Law release the franchisor from liability?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
ct of laws to the extent required by the Maryland Franchise Registration and Disclosure Law, Maryland law shall prevail.
- e. The Franchise Agreement and Supplemental Agreements provide for termination upon bankruptcy. This provision may not be enforceable under federal bankruptcy law (11 U.S.C. Section 101, et seq.).
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- The Franchise Disclosure Questionnaire, which is attached as an Exhibit to the Disclosure Document, is amended as follows:
All representations requiring prospective franchisees to assent to the release, estoppel or waiver of liability are not intended to nor shall they act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law.
In recognition of the requirements of the Maryland Franchise Law, the Franchise Agreement and Supplemental Agreements are amended to add the following:
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- Any claims arising under the Maryland Franchise Law must be brought within three (3) years after the grant of the franchise.
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Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the Franchise Questionnaire's disclaimer of violations of the Maryland Franchise Law does not release Itan from liability. The FDD explicitly states that any representations made by a prospective franchisee in the Franchise Questionnaire, disclaiming or acknowledging acts that could be a violation of the Maryland Franchise Law, are not intended to act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Law. This amendment ensures that Itan cannot use the questionnaire to avoid responsibility for potential violations.
This provision is included in the FDD to comply with the Maryland Franchise Registration and Disclosure Law. It protects prospective Itan franchisees in Maryland by ensuring that they do not inadvertently waive their rights under Maryland franchise law simply by completing the Franchise Questionnaire. This means that even if a franchisee makes certain disclaimers or acknowledgements in the questionnaire, they still retain the right to pursue claims against Itan for violations of the Maryland Franchise Law.
In practical terms, this amendment provides an additional layer of protection for franchisees in Maryland. It clarifies that the Franchise Questionnaire is not a tool that Itan can use to shield itself from liability under Maryland franchise law. Franchisees should still complete the questionnaire accurately and honestly, but they can be assured that their answers will not be used against them to waive their legal rights. This ensures that Itan remains accountable for compliance with the Maryland Franchise Law and cannot evade its responsibilities through the questionnaire.