What is the Pearce Bespoke franchisee acknowledging when signing the Franchisee Acknowledgement Statement, as amended by the Maryland amendment?
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, as amended by the Maryland amendment, ensures certain protections for franchisees under Maryland Franchise Law. Specifically, any statements within the acknowledgement that might require a franchisee to release, waive, or relinquish liability do not apply to liabilities arising from the Maryland Franchise Law. This means that franchisees cannot unintentionally forfeit their rights under Maryland's franchise regulations simply by signing the standard acknowledgement form.
Furthermore, the Maryland amendment clarifies that no statement, questionnaire, or acknowledgement signed by a franchisee at the start of the franchise relationship can waive claims under state franchise law. This includes claims related to fraud in the inducement, where a franchisee might argue they were misled into signing the agreement. Similarly, franchisees cannot disclaim reliance on statements made by Pearce Bespoke or its representatives. This provision overrides any conflicting terms in other franchise documents, reinforcing the franchisee's protection under Maryland law.
In practical terms, this amendment ensures that Pearce Bespoke franchisees in Maryland retain their legal rights and recourse under state franchise law, regardless of any standard waivers or acknowledgements they may sign. It prevents the franchisor from using these documents to shield themselves from liability for violations of Maryland franchise regulations. This is a significant protection for franchisees, as it allows them to pursue legal action if they believe Pearce Bespoke has acted unlawfully, without being barred by a pre-existing waiver.