Do representations requiring Pearce Bespoke franchisees to assent to a release of liability act as a release of liability under the Maryland Franchise Registration and Disclosure Law?

According to Pearce Bespoke's 2025 Franchise Disclosure Document, any representations requiring prospective franchisees in Maryland to agree to a release, estoppel, or waiver of liability do not act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. This protection is explicitly stated in the addendum to the Franchise Disclosure Document required by the State of Maryland.

This means that even if a Pearce Bespoke franchisee signs an agreement that seems to release the franchisor from liability, that agreement will not be valid under Maryland franchise law. This ensures that franchisees retain their rights and protections under Maryland law, regardless of any potentially conflicting terms in the franchise agreement.

The FDD also specifies that any claims arising under the Maryland Franchise Law must be brought within three years after the grant of the franchise. Additionally, any general release required by the terms and conditions of the Franchise Agreement as a condition of renewal, assignment, or transfer will not apply to any liability under the Maryland Franchise Law. These stipulations reinforce the franchisee's rights and set clear guidelines for legal actions within the state.

Pearce Bespoke's franchise agreement also clarifies that a franchisee's right to file a lawsuit alleging a cause of action arising under the Maryland Franchise Law cannot be waived and can be pursued in any court of competent jurisdiction within Maryland. This provision further protects the franchisee's ability to seek legal recourse under Maryland law, regardless of any contradictory terms in the franchise agreement.