For Monicals Pizza franchises in Maryland, how does the addendum address any section of the Franchise Agreement requiring a release, estoppel, or waiver of liability as a condition of purchasing the Franchise?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| Pizza Corporation and | This Addendum to the Franchise Agreement is agreed to this day of, 20, between Monical |
|---|---|
| 1. | In recognition of the requirements of the Maryland Franchise Registration and Disclosure Law, Md. Code Ann., Bus. Reg. §§14-201-14-233, the Franchise Agreement for Monical Pizza Corporation is amended as follows: |
| | Sections 4.2.9, 8.3 and 18.2.3 require Franchisee to sign a general release as a condition of renewal or transfer of the franchise and Sections 5.2, 5.5 and 8.3 require Franchisee to sign a general release as a condition to receiving a refund of a portion of the Franchise Fee following a termination of the franchise; such release shall exclude claims arising under the Maryland Franchise Registration and Disclosure Law. |
| | Section 16.2.1.11, which terminates the Franchise Agreement upon the bankruptcy of the Franchisee, may not be enforceable under federal bankruptcy law (11 U.S.C. Section 101, et seq.). |
| | Section 23.1 requires that the franchise be governed by the laws of the State of Illinois; however, in the event of a conflict of laws to the extent required by the Maryland Franchise Registration and Disclosure Law, the laws of the State of Maryland shall prevail. |
| | Sections 23.2 and 23.7 require litigation or arbitration to be conducted in the State of Illinois; the requirement shall not limit any rights Franchisee may have under the Maryland Franchise Registration and Disclosure Law to bring suit in the State of Maryland. |
| | Any Section of the Franchise Agreement requiring Franchisee to assent to any release, estoppel or waiver of liability as a condition of purchasing the Franchise 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. |
| | Section 23.4 is amended to the extent that any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three (3) years after the grant of the franchise. |
| 2. | Any portion of the Franchise Agreement which requires prospective franchisees to disclaim the occurrence and/or acknowledge the non-occurrence of acts would constitute a violation of the Maryland Franchise Registration and Disclosure Law. Any such representations 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. |
| 3. | Each provision of this Addendum is effective only to the extent that the jurisdictional requirements of the Maryland Franchise Registration and Disclosure Law applicable to the provisions are met independently of this Addendum. To the extent this Addendum shall be deemed to be inconsistent with any terms or conditions of said Franchise Agreement or exhibits or attachments thereto, the terms of this Addendum shall govern. IN WITNESS WHEREOF, each of the undersigned hereby acknowledges having read this Addendum and understands and consents to be bound by all of its terms. MONICAL PIZZA CORPORATION: Franchisee: |
| By: | By: |
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, the addendum for Maryland addresses sections of the Franchise Agreement that require a release, estoppel, or waiver of liability as a condition of purchasing the franchise. Specifically, it states that any such sections 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. This provision ensures that franchisees in Maryland retain their rights and protections under Maryland law, regardless of any potentially conflicting terms in the standard Franchise Agreement.
Furthermore, the addendum clarifies that any portion of the Franchise Agreement that requires prospective franchisees to disclaim the occurrence and/or acknowledge the non-occurrence of acts would violate the Maryland Franchise Registration and Disclosure Law. Such representations are explicitly stated as not acting as a release, estoppel, or waiver of liability under Maryland law. This protects franchisees from inadvertently waiving their rights through disclaimers or acknowledgments during the franchise purchasing process.
In practical terms, this means that a Monicals Pizza franchisee in Maryland cannot be forced to sign away their rights under Maryland's franchise laws as a condition of buying the franchise. The addendum ensures that the franchisee retains the ability to pursue claims under Maryland law, even if other parts of the Franchise Agreement might suggest otherwise. This provides an added layer of protection for franchisees operating in Maryland.