In Maryland, does the disclaimer of the occurrence or acknowledgement of the non-occurrence of acts in the Monicals Pizza Franchise Agreement, Area Development Agreement, or Disclosure Questionnaire act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Exhibit H to the Disclosure Document is amended as follows:
- Any portion of the Franchise Agreement, Area Development Agreement or the Disclosure Questionnaire 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.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, any part of the Franchise Agreement, Area Development Agreement, or Disclosure Questionnaire that compels prospective franchisees to disclaim the occurrence or acknowledge the non-occurrence of certain actions does not serve as a release, estoppel, or waiver of liability under the Maryland Franchise Registration and Disclosure Law. This means that even if a franchisee makes such a disclaimer or acknowledgement, they do not forfeit their rights or protections under Maryland law.
This provision is designed to protect franchisees in Maryland from inadvertently waiving their legal rights. It ensures that franchisees can still pursue claims under the Maryland Franchise Registration and Disclosure Law, regardless of any disclaimers or acknowledgements they may have made in the franchise documents. This protection is particularly important because franchise agreements often contain complex legal language that may be difficult for franchisees to fully understand.
For a prospective Monicals Pizza franchisee in Maryland, this addendum offers significant reassurance. It clarifies that certain clauses within the franchise documents cannot be used to prevent them from seeking legal recourse under Maryland law. This helps to level the playing field and ensures that franchisees are not unfairly disadvantaged by the franchisor's standard agreement terms. Franchisees should still carefully review all documents with legal counsel to fully understand their rights and obligations, but this provision provides an additional layer of protection under Maryland law.