Are representations requiring Pearce Bespoke franchisees to assent to a release, estoppel, or waiver of liability intended to act as a release under the Maryland Franchise Registration and Disclosure Law?

According to Pearce Bespoke's 2025 Franchise Disclosure Document, any representations requiring prospective franchisees to agree to a release, estoppel, or waiver of liability are not intended to act as a release, estoppel, or waiver of any liability under the Maryland Franchise Registration and Disclosure Law. This protection extends to both the Franchise Agreement and the Area Development Agreement.

Specifically, the FDD includes an addendum required by the State of Maryland that reinforces this point. It states clearly that no requirement for a franchisee to agree to any release, assignment, novation, estoppel, or waiver of liability as a condition of purchasing a Pearce Bespoke franchise will act as a release, estoppel, or waiver of any liability under the Maryland Franchise Law. This addendum also clarifies that any general release required as a condition of renewal, assignment, or transfer of the franchise does not apply to any liability under the Maryland Franchise Law.

Furthermore, the Pearce Bespoke Franchise Agreement itself is amended to ensure consistency with Maryland law. This amendment emphasizes that nothing within the agreement waives the franchisee's right to file a lawsuit alleging a cause of action arising under the Maryland Franchise Law in a competent Maryland court. It also specifies that any claims arising under the Maryland Franchise Law must be brought within three years after the grant of the franchise.