factual

What does the Maryland amendment supersede regarding terms in documents executed in connection with the Pearce Bespoke franchise?

Pearce_Bespoke Franchise · 2025 FDD

Answer from 2025 FDD Document

  1. 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 Maryland amendment addresses the enforceability of certain terms within documents related to the franchise agreement. Specifically, a provision within the Maryland Amendment to the Area Development Agreement states that any statement, questionnaire, or acknowledgment signed by a franchisee regarding the commencement of the franchise relationship cannot waive claims under state franchise law, including claims of fraud.

This amendment ensures that franchisees in Maryland retain their rights under Maryland franchise law, regardless of any agreements they may have signed. It prevents Pearce Bespoke from enforcing terms that would force franchisees to waive their legal rights or disclaim reliance on statements made by the franchisor or its representatives. This protection extends to claims of fraud in the inducement, meaning franchisees cannot be prevented from claiming they were misled into entering the franchise agreement.

In practical terms, this means a Pearce Bespoke franchisee in Maryland has greater legal recourse if they believe they have been wronged by the franchisor. The amendment aims to create a fairer balance of power between the franchisor and franchisee, ensuring that franchisees are not unknowingly or unwillingly giving up their rights under state law. This type of amendment is common in franchise agreements to comply with state-specific franchise laws, which often seek to protect franchisees from overreaching franchisor practices.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.