Under the Maryland Franchise Registration and Disclosure Law, can any provisions of the Management Recruiters Franchise Agreement require a franchisee to assent to a release, estoppel, or waiver of liability as a condition of purchasing a franchise?

According to Management Recruiters' 2024 Franchise Disclosure Document, provisions within the Franchise Agreement that might require a franchisee to agree to a release, estoppel, or waiver of liability as a condition of purchasing a Management Recruiters franchise are not intended to act as a release, estoppel, or waiver of any liability under the Maryland Franchise Registration and Disclosure Law. This means that while the agreement might contain such clauses, they cannot waive the franchisee's rights and protections under Maryland law.

The FDD includes an addendum specifically for Maryland, addressing concerns about Item 17 of the standard agreement. This addendum clarifies that any general release required for renewal, assignment, or transfer of the franchise does not apply to liabilities arising from the Maryland Franchise Registration and Disclosure Law. Furthermore, the representations made by Management Recruiters in the Disclosure Document itself cannot serve as a release, estoppel, or waiver of any liability they incur under Maryland law.

This protection ensures that Maryland franchisees retain their legal rights and recourse under state franchise laws, regardless of any potentially conflicting terms in the standard Management Recruiters Franchise Agreement. Prospective franchisees in Maryland should carefully review the addendum and understand their rights under the Maryland Franchise Registration and Disclosure Law, consulting with legal counsel as needed to fully understand the implications.