If a Southern Steer franchise is located in Maryland, what effect do statements, questionnaires, or acknowledgments signed by the franchisee have on waiving claims under state franchise law or disclaiming reliance on franchisor statements?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
If the franchise is located in or if franchisee is a resident of Maryland, then the designated provision in the Franchise Agreement will be amended as follows:
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 5 — and 7 of the FDD, Section 3.1 of the Franchise Agreement and Section 4.1 of the Multi-Unit Development Agreement are hereby amended to state that payment of the initial franchise fee and development fee will be deferred until We have satisfied Our pre-opening obligations, and You have commenced business operations. (FDD pages 168–290)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, if a Southern Steer franchise is located in Maryland, certain protections are in place for the franchisee regarding waivers and disclaimers. Specifically, any statement, questionnaire, or acknowledgment signed by the franchisee cannot waive claims under Maryland's franchise law, including claims of fraud in the inducement.
This means that even if a franchisee signs a document that appears to waive their rights, that waiver will not be legally effective under Maryland franchise law. This protection also extends to disclaimers of reliance on statements made by Southern Steer, its franchise sellers, or anyone acting on its behalf. In other words, a franchisee cannot be prevented from claiming they relied on statements made by Southern Steer, even if they signed something suggesting otherwise.
This provision is designed to protect franchisees in Maryland from inadvertently or unknowingly giving up their legal rights. It ensures that franchisees can pursue claims against Southern Steer if they believe they were misled or defrauded, regardless of any waivers or disclaimers they may have signed. This specific clause supersedes any other conflicting terms within any document executed in connection with the franchise agreement, reinforcing the protection afforded to franchisees in Maryland.