How does the Pearce Bespoke Franchisee Acknowledgement Statement relate to the Maryland Franchise Registration and Disclosure law?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
To the extent of inconsistencies, the Franchisee Acknowledgement Statement is hereby amended to state that all representations requiring prospective franchisees to assent to a release, estoppel or waiver of liability 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.
- No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, the Franchisee Acknowledgement Statement is amended to ensure compliance with the Maryland Franchise Registration and Disclosure Law. Specifically, any part of the Acknowledgement Statement that requires a prospective franchisee to release, waive, or estop any liability will not be considered a release, estoppel, or waiver of liability under Maryland law. This amendment protects franchisees in Maryland from unintentionally giving up their rights under Maryland's franchise laws when signing the Acknowledgment Statement.
This means that even if the Franchisee Acknowledgement Statement contains language that could be interpreted as a release of liability, that language will not be enforceable in Maryland to the extent that it conflicts with Maryland's franchise laws. This ensures that franchisees retain their legal rights and protections under Maryland law, regardless of what they may have acknowledged or agreed to in the Franchisee Acknowledgement Statement.
Furthermore, no statement, questionnaire, or acknowledgment signed by a Pearce Bespoke franchisee can waive claims under any applicable state franchise law, including claims of fraud in the inducement, or disclaim reliance on statements made by the franchisor or its representatives. This provision overrides any other conflicting terms in any document related to the franchise agreement, reinforcing the protection of franchisee rights under state franchise laws.