In Maryland, are provisions of the Management Recruiters Franchise Agreement requiring a release, estoppel, or waiver of liability as a condition of purchasing a franchise intended to act as a release, estoppel, or waiver of liability under the Maryland Franchise Registration and Disclosure Law?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
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- To the extent that any provisions of the Franchise Agreement require you to assent to any release, estoppel or waiver of liability as a condition to your purchasing a MRI franchise, such provisions are not intended to norshall they act as a release, estoppel or waiver of any liability underthe Maryland Franchise Registration and Disclosure Law.
Source: Item 23 — RECEIPTS (FDD pages 67–327)
What This Means (2024 FDD)
According to the 2024 Management Recruiters Franchise Disclosure Document, any provisions within the Franchise Agreement that require a franchisee in Maryland to agree to a release, estoppel, or waiver of liability as a condition of purchasing a Management Recruiters franchise are not intended to, and will not, act as a release, estoppel, or waiver of liability under the Maryland Franchise Registration and Disclosure Law. This addendum ensures that the franchisee's rights under Maryland law are protected, regardless of any conflicting terms in the standard franchise agreement. This protection specifically applies to the franchisee's initial purchase of the franchise.
This provision is included as an addendum to the Management Recruiters Franchise Disclosure Document specifically for the state of Maryland. It clarifies that the standard franchise agreement's clauses regarding releases, estoppels, or waivers do not override the protections provided by Maryland's franchise laws. This means that Management Recruiters cannot enforce any agreement that would prevent a franchisee from pursuing claims under Maryland's franchise regulations.
Furthermore, Maryland law stipulates that a franchisor cannot require a prospective franchisee to sign a release that would relieve anyone from liability under the Maryland Franchise Registration and Disclosure Law as a condition of the franchise sale. The Management Recruiters Franchise Agreement's provisions related to releases are subject to this legal requirement, ensuring it remains valid and applicable to renewals, assignments, and transfers under the agreement. This ensures that franchisees retain their rights and protections under Maryland law throughout the duration of their agreement with Management Recruiters.