In Maryland, can a Spray Net franchisee disclaim reliance on statements made by the franchisor?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
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 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, specifically the Maryland Addendum to the Franchise Agreement, a franchisee in Maryland cannot disclaim reliance on statements made by Spray Net or anyone acting on its behalf. This protection extends to claims under Maryland franchise law, including instances of fraud in the inducement. This means that any agreement, statement, questionnaire, or acknowledgment signed by the franchisee at the start of the franchise relationship cannot waive their right to claim they relied on statements from Spray Net.
This provision is designed to protect franchisees from unknowingly giving up their legal rights. It ensures that franchisees can hold Spray Net accountable for representations made during the franchise sales process. The addendum explicitly states that this provision overrides any conflicting terms in any document related to the franchise agreement, reinforcing its importance.
For a prospective Spray Net franchisee in Maryland, this is a significant safeguard. It means that even if they sign documents that appear to disclaim reliance on the franchisor's statements, those disclaimers will not be legally binding under Maryland law. This allows the franchisee to pursue legal action if they believe they were misled by Spray Net's representations. This protection is particularly important in the context of franchise sales, where franchisees often rely heavily on the franchisor's promises and projections.