Are representations requiring prospective 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 the 2025 Pearce Bespoke Franchise Disclosure Document, any representations that require prospective franchisees to agree to a release, estoppel, or waiver of liability are not intended to, and will not, act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. This statement appears in both the standard Franchise Agreement and the Area Development Agreement, as well as the Franchisee Acknowledgement Statement, ensuring consistent application across different contractual documents. This is further reinforced by an addendum specifically for Maryland, stating that no requirement to agree to such releases shall act as a waiver of liability under Maryland Franchise Law.

This provision is included to comply with Maryland Franchise Registration and Disclosure Law, which prohibits franchisors from requiring franchisees to release them from liability under that law as a condition of the franchise agreement. The FDD explicitly states that any inconsistencies with Maryland law are deleted or amended to align with the law. This ensures that Pearce Bespoke franchisees in Maryland retain their rights and protections under state franchise law, regardless of any potentially conflicting language in the standard franchise documents.

For a prospective Pearce Bespoke franchisee in Maryland, this means that any clause in the franchise agreement that seems to waive their right to sue or hold Pearce Bespoke liable for violations of Maryland franchise law is not enforceable. They retain the right to bring claims against the franchisor for actions covered under the Maryland Franchise Registration and Disclosure Law. This protection extends to claims of fraud in the inducement and disclaiming reliance on statements made by the franchisor.

It is important for prospective franchisees to understand these protections and consult with legal counsel to ensure their rights are fully protected under Maryland law. 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.