Under what conditions is it unlawful for Ledgers to repurchase a franchisee's business?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any appl
This Acknowledgment is inapplicable to Washington franchisees and the Washington Addendum applies for Washington franchisees.
Further, 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 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 Ledgers Franchise Disclosure Document, a franchisee's signed statement, questionnaire, or acknowledgment cannot waive claims under applicable laws regarding the franchise relationship's commencement. This protection is particularly emphasized for Maryland franchisees, where any required representations for franchisees to release liability do not act as a release of liability under the Maryland Franchise Registration and Disclosure Law.
This means Ledgers cannot enforce waivers that prevent franchisees from pursuing legal claims related to the franchise agreement, especially concerning liability under franchise laws. This ensures franchisees retain their legal rights and recourse options, despite any agreements they may have signed.
These stipulations are designed to protect franchisees from unknowingly or unwillingly surrendering their legal rights. Prospective Ledgers franchisees should be aware of these protections, particularly those in Maryland, and consult with legal counsel to fully understand their rights and obligations under the franchise agreement and relevant state laws.