What is the implication of the Maryland Franchise Registration and Disclosure Law regarding releases, estoppels, or waivers of liability for Ledgers franchisees?

According to Ledgers' 2025 Franchise Disclosure Document, any representations requiring prospective franchisees in Maryland to agree to a release, estoppel, or waiver of liability do 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 release Ledgers from certain liabilities, those releases are not valid concerning violations of Maryland franchise law. This protects the franchisee's rights under Maryland law, regardless of what other agreements they may sign.

This provision ensures that Ledgers franchisees in Maryland retain their legal rights and remedies under the state's franchise law. It prevents Ledgers from using standard contract language to inadvertently or intentionally shield itself from liability for actions that violate Maryland franchise regulations. This is particularly important because franchise agreements often contain complex legal terms that franchisees may not fully understand.

For a prospective Ledgers franchisee in Maryland, this addendum offers a degree of protection. It means that they cannot be forced to waive their rights under Maryland franchise law through boilerplate contract language. If Ledgers violates the Maryland Franchise Registration and Disclosure Law, the franchisee retains the right to pursue legal action, even if they have signed agreements containing general releases or waivers. This helps to level the playing field between the franchisor and franchisee, ensuring that Ledgers remains accountable for its actions under Maryland law.