What is the effect of a franchisee signing an acknowledgement in connection with the commencement of the Pearce Bespoke franchise relationship, according to the Maryland amendment?

According to Pearce Bespoke's 2025 Franchise Disclosure Document, the Maryland amendment addresses the effect of a franchisee signing any statement, questionnaire, or acknowledgment when starting their franchise relationship. Specifically, such documents cannot waive claims under Maryland franchise law, including claims related to fraud in the inducement. Additionally, these documents cannot disclaim reliance on statements made by Pearce Bespoke, its sellers, or anyone acting on their behalf. This provision overrides any conflicting terms in other documents related to the franchise agreement.

In practical terms, this means that a Pearce Bespoke franchisee in Maryland cannot be forced to give up their legal rights under Maryland franchise law simply by signing an acknowledgment or similar document. For example, if a franchisee believes they were misled by Pearce Bespoke during the franchise sales process, they can still pursue a claim for fraud, even if they signed a document that appears to waive such claims. Similarly, the franchisee can't be prevented from arguing that they relied on statements made by Pearce Bespoke during the sales process.

This amendment provides an additional layer of protection for Pearce Bespoke franchisees in Maryland, ensuring that they retain their rights under state franchise law. It prevents Pearce Bespoke from using standard form documents to inadvertently or intentionally limit the legal recourse available to franchisees. This is particularly important in the context of franchise relationships, where there is often a power imbalance between the franchisor and franchisee. Prospective franchisees should carefully review all documents and understand their rights under Maryland law.