Does the Maryland amendment allow a franchisee to disclaim reliance on statements made by the franchisor when signing documents related to the Pearce Bespoke franchise?

According to the 2025 Pearce Bespoke Franchise Disclosure Document, the Maryland Amendment ensures that franchisees cannot disclaim reliance on statements made by the franchisor. Specifically, no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor or their representatives. This provision takes precedence over any conflicting terms in other franchise documents. This protection applies to documents signed in connection with the commencement of the franchise relationship.

This means that Pearce Bespoke franchisees in Maryland retain the right to pursue legal action based on misrepresentations or fraudulent statements made by the franchisor during the franchise sales process. The amendment ensures that franchisees are not forced to forfeit their legal rights through waivers or disclaimers. This is a significant protection for franchisees, as it allows them to hold the franchisor accountable for their statements and actions.

This type of protection is not universally included in franchise agreements across all states, so it represents a notable benefit for Pearce Bespoke franchisees in Maryland. It is designed to create a fairer balance of power between the franchisor and franchisee, ensuring that the franchisee's rights are safeguarded under Maryland law. Prospective franchisees should carefully review all addenda and amendments to the franchise agreement to understand their rights and obligations fully.