What does the Maryland Franchise Registration and Disclosure Law prohibit Mr. Sandless from requiring of a prospective franchisee?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 14-226 of the Maryland Franchise Registration and Disclosure Law prohibits a franchisor from requiring a prospective franchisee to assent to any release, estoppel or waiver of liability as a condition of purchasing a franchise.
Any disclaimer regarding the occurrence and/or acknowledgment of the non-occurrence of acts that would constitute a violation of the Franchise Law in order to purchase 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.
The Franchisee Disclosure Acknowledgment Statement, Schedule F to the Franchise Agreement, is amended to comply with this provision.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 30–34)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, the Maryland Franchise Registration and Disclosure Law has specific protections for franchisees. Mr. Sandless is prohibited from requiring a prospective franchisee to agree to any release, estoppel, or waiver of liability as a condition of purchasing a Mr. Sandless franchise. This means Mr. Sandless cannot force a potential franchisee to give up their rights or claims under Maryland franchise law in order to buy the franchise.
Furthermore, any disclaimers or acknowledgments suggesting that actions that would violate franchise law did not occur are also unenforceable as a release, estoppel, or waiver of liability under Maryland law. This ensures that franchisees cannot be compelled to sign away their legal protections through fine print or acknowledgments.
To ensure compliance, Mr. Sandless states that the Franchisee Disclosure Acknowledgment Statement, which is included as Schedule F to the Franchise Agreement, has been amended to align with this provision. This amendment is intended to protect the franchisee's rights and ensure they are not unknowingly waiving their legal recourse under Maryland law.