What is the effect of acknowledgements or representations of the Mr. Sandless franchisee which disclaim the occurrence of acts that would constitute a violation of the Franchise Law?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
nchisee is permitted to enter into litigation with the Franchisor in the State of Maryland, regardless of the language in the Franchise Agreement.
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- The franchise agreement is hereby amended to provide that the acknowledgements or representations of the franchisee which disclaim the occurrence and/or acknowledge the non-occurrence of acts that would constitute a violation of the Franchise Law 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.
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- The first sentence of paragarph "E" beginning with "You acknowledge..", under the section titled "Background" of the Franchise Agreement, is hereby deleted in its entirety.
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- Sections 27.1 through 27.5 of the Franchise Agreement are hereby deleted.
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Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 30–34)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, any acknowledgements or representations made by a franchisee that disclaim or acknowledge the non-occurrence of actions that would violate franchise law do not act as a release, estoppel, or waiver of liability under the Maryland Franchise Registration and Disclosure Law. This amendment to the franchise agreement ensures that franchisees in Maryland retain their rights and protections under state law, regardless of any statements they may have made. This specifically applies to the acknowledgements made by the franchisee.
Furthermore, the FDD states that no statement, questionnaire, or acknowledgment signed by a franchisee in connection with starting the franchise can waive claims under any applicable state franchise law, including claims related to fraud in the inducement. Similarly, these documents cannot disclaim reliance on statements made by Mr. Sandless, its franchise sellers, or anyone acting on their behalf. This provision takes precedence over any conflicting terms in any document related to the franchise agreement.
For prospective Mr. Sandless franchisees, this means that any attempt by the franchisor to use franchisee acknowledgements or representations to limit their legal rights or disclaim reliance on franchisor statements is invalid, particularly in Maryland. This protection extends to claims of fraud. Franchisees should be aware of these protections and consult with legal counsel if they believe their rights are being undermined by such acknowledgements or representations. This ensures that franchisees are not inadvertently waiving their rights through standard documentation.