What is the effect of representations requiring prospective Stretch Zone franchisees to assent to a release, estoppel or waiver of liability under the Maryland Franchise Registration and Disclosure Law, according to the addendum?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
All representations requiring prospective franchisees to assent to a release, estoppel or waiver of liability are not intended to nor shall they act as a release, estoppel or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law.
Each of the undersigned acknowledges having read this Addendum, understands and consents to be bound by all of its terms.
FRANCHISOR: FRANCHISEE: STRETCH ZONE FRANCHISING LLC, a (IF ENTITY): Florida limited liability company By: Tony Zaccario, CEO and President Date:, 20 [Name] By: Name: Title: Date:, 20 (IF INDIVIDUALS): [Signature] [Print Name] Date:, 20 [Signature] [Print Name] Date:, 20
Source: Item 8 — Receipts. Any sale made must be in compliance with § 683(8) of the Franchise Sale Act (N.Y. Gen. Bus. L. § 680 et seq.), which describes the time period a Franchise Disclosure Document (offering prospectus) must be provided to a prospective franchisee before a sale may be made. New York law requires a franchisor to provide the Franchise Disclosure Document at the earliest of the first personal meeting or ten (10) business days before the execution of the franchise or other agreement or the payment of any consideration that relates to the franchise relationship. (FDD pages 99–263)
What This Means (2025 FDD)
According to the 2025 Stretch Zone Franchise Disclosure Document, the Maryland Addendum clarifies the effect of certain representations made to prospective franchisees. Specifically, any representations that require a prospective franchisee to agree to a release, estoppel, or waiver of liability will not act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. This means that even if a franchisee signs a document that appears to waive their rights, they still retain the right to pursue claims under Maryland franchise law.
This provision is designed to protect franchisees in Maryland by ensuring that they cannot inadvertently or unknowingly give up their legal rights under the state's franchise laws. The addendum makes it clear that the franchisee's right to bring claims under the Maryland Franchise Registration and Disclosure Law remains intact, regardless of any releases or waivers they may have signed. This is particularly important because Maryland law aims to protect franchisees from unfair or deceptive practices by franchisors.
For a prospective Stretch Zone franchisee in Maryland, this addendum provides an additional layer of security. It ensures that they can still pursue legal remedies if they believe Stretch Zone has violated the Maryland Franchise Registration and Disclosure Law, even if they have signed agreements containing release, estoppel, or waiver clauses. Franchisees may bring claims in Maryland within three years after the grant of the franchise.