Under Maryland law, can a Zoomin Groomin franchisee waive their right to file a lawsuit?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
(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.
- F. Payment of the initial franchise fee shall be deferred until Franchisor has satisfied its preopening obligations to Franchisee and Franchisee has commenced doing business. The Illinois Attorney General's Office imposed this deferral requirement due to Franchisor's financial condition.
MARYLAND ADDENDUM TO THE DISCLOSURE DOCUMENT
As to franchises governed by the Maryland Franchise Registration and Disclosure Law, if any of the terms of the Disclosure Document are inconsistent with the terms below, the terms below control.
- Item 17.b. is modified to also provide, "The general release required as a condition of renewal, sale, and/or assignment/transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
-
- Item 17.u. is modified to also provide, "This franchise agreement provides that disputes are resolved through arbitration. A Maryland franchise regulation states that it is an unfair or deceptive practice to require a franchisee to waive its right to file a lawsuit in Maryland claiming a violation of the Maryland Franchise Law.
Source: Item 17 — g. of the Disclosure Document is modified to state that, in addition to the grounds for immediate termination specified in Item 17.h., the franchisor can terminate upon written notice and a 60 day opportunity to cure for a breach of the Franchise Agreement. (FDD pages 51–65)
What This Means (2025 FDD)
According to the 2025 Zoomin Groomin FDD, Maryland franchise regulations address the waiver of a franchisee's right to file a lawsuit. Specifically, it is considered an unfair or deceptive practice if the franchise agreement requires a franchisee to waive their right to file a lawsuit in Maryland, especially concerning violations of Maryland Franchise Law. However, the FDD also acknowledges that the enforceability of this regulation is subject to some dispute due to the Federal Arbitration Act. This means that while the franchise agreement may contain a clause requiring disputes to be resolved through arbitration, the franchisee's right to file a lawsuit under Maryland Franchise Law may still be protected.
Furthermore, the Zoomin Groomin FDD states that no statement, questionnaire, or acknowledgment signed by a franchisee at the start of the franchise relationship can waive claims under any applicable state franchise law, including claims related to fraud in the inducement. This provision is designed to supersede any other conflicting terms in documents executed in connection with the franchise. This ensures that franchisees are not unknowingly or unintentionally giving up their legal rights through standard paperwork.
For a prospective Zoomin Groomin franchisee in Maryland, this means that while the franchise agreement may include arbitration clauses, their right to pursue legal action under Maryland Franchise Law is intended to be protected. It is important for franchisees to be aware of these protections and to consult with legal counsel to fully understand their rights and obligations under both the franchise agreement and Maryland law. The FDD also specifies that any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise.