What is the effect of the Pearce Bespoke amendment on representations requiring franchisees to waive liability under the Maryland Franchise Registration and Disclosure Law?

According to the 2025 Pearce Bespoke FDD, the amendment related to the Maryland Franchise Registration and Disclosure Law ensures that no representations can force a franchisee to waive liability under that law. Specifically, any statement, questionnaire, or acknowledgment signed by a franchisee cannot waive claims under state franchise law, including claims of fraud, or disclaim reliance on statements made by Pearce Bespoke or its representatives. This amendment is designed to protect franchisees' rights under Maryland law.

This means that even if a Pearce Bespoke franchisee signs a document that appears to waive their rights, that waiver will not be valid under Maryland franchise law. This protection extends to claims of fraud in the inducement, meaning a franchisee can still pursue a claim that they were misled into buying the franchise. The amendment also prevents Pearce Bespoke from disclaiming reliance on any statements made during the franchise sales process.

For a prospective Pearce Bespoke franchisee in Maryland, this amendment provides an additional layer of legal protection. It ensures that they cannot inadvertently waive their rights under the Maryland Franchise Registration and Disclosure Law through standard contract language. This could be particularly important if a franchisee believes they have been misled or that Pearce Bespoke has violated the law. The franchisee retains the right to bring a lawsuit in Maryland, and any attempt to force them to waive this right is unenforceable.