In Maryland, do representations requiring prospective Learningrx franchisees to assent to a release, estoppels, or waiver of liability act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
Item 17(m) of the Franchise Disclosure Document, Section 14.04(b) of the Franchise Agreement and Section 7.03 of the Area Developer Agreement are amended to state that the general release required as a condition of sale and/or assignment/transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
Section 19 and Attachment VII of the Franchise Agreement and Section 14 of the Area Developer Agreement are amended to state: All representations requiring prospective franchisees to assent to a release, estoppels 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.
The Attachment VII to the Franchise Agreement, Statement of Franchisee Questionnaire, is hereby deleted in its entirety.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, representations requiring prospective franchisees in Maryland to agree to a release, estoppel, or waiver of liability will not act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. This means that even if a franchisee signs documents that appear to waive their rights, those waivers are not enforceable regarding liabilities under Maryland's franchise law. This protection is specifically called out in an amendment to Section 19 and Attachment VII of the Franchise Agreement and Section 14 of the Area Developer Agreement.
This provision ensures that Learningrx franchisees in Maryland retain their legal rights and protections under the state's franchise laws. It prevents Learningrx from using contractual language to circumvent the franchisee's ability to pursue claims related to violations of the Maryland Franchise Registration and Disclosure Law. This is a significant benefit for franchisees, as it safeguards their ability to seek legal recourse if they believe Learningrx has acted unlawfully.
Furthermore, the FDD explicitly states that the Attachment VII to the Franchise Agreement, specifically the Statement of Franchisee Questionnaire, is deleted entirely for Maryland franchisees. This questionnaire involves representations and acknowledgments from the franchisee, and its removal reinforces the protection against unintended waivers of rights under Maryland law. This deletion ensures that Learningrx franchisees are not inadvertently relinquishing their rights through the questionnaire.
In summary, Learningrx franchisees in Maryland can be assured that any attempts to have them release, waive, or estop their rights under the Maryland Franchise Registration and Disclosure Law are not enforceable. This provides a layer of legal security for franchisees operating in Maryland, ensuring they can pursue legal claims if necessary, without being barred by contractual waivers or releases.