For Kidokinetics, does the amendment state that representations requiring prospective franchisees to assent to a release of liability act as a release under the Maryland Franchise Registration and Disclosure Law?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
The Franchise Agreement and Franchise Disclosure Questionnaire are amended to state that all representations requiring prospective franchisees to assent to a 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.
Source: Item 23 — RECEIPT (FDD pages 59–205)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the amendment addresses the enforceability of releases, estoppels, or waivers of liability under Maryland's franchise law. Specifically, representations within the Franchise Agreement and Franchise Disclosure Questionnaire that require prospective franchisees to agree to such releases are explicitly stated not to act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. This amendment aims to protect franchisees' rights under Maryland law, ensuring that they cannot inadvertently waive their legal protections through standard contractual language.
This provision is significant for prospective Kidokinetics franchisees in Maryland as it clarifies that certain standard clauses in the franchise agreement will not prevent them from pursuing claims under Maryland's franchise laws. It ensures that franchisees retain their rights and remedies under state law, regardless of any general release or waiver language they may have agreed to. This protection is particularly relevant in the context of franchise relationships, where power imbalances may exist between the franchisor and franchisee.
Furthermore, the amendment reinforces the franchisee's ability to bring lawsuits in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, provided that such claims are brought within three years after the grant of the franchise. This clarification helps to ensure that franchisees understand their legal options and the time frame within which they must act. Kidokinetics franchisees should consult with a legal professional to fully understand their rights and obligations under Maryland franchise law.