According to the Virginia addendum, does 1-800-GOT-JUNK? allow a franchisee to disclaim reliance on statements made by the franchisor or its representatives?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
VIRGINIA
VIRGINIA
ADDENDUM TO THE FRANCHISE DISCLOSURE DOCUMENT
The following modifications are to the 1-800-GOT-JUNK?
LLC Franchise Disclosure Document and
may supersede, to the extent then required by valid applicable state law, certain portions of the Franchise
Agreement dated __________________, 20.
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 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
According to the 2025 1-800-GOT-JUNK? Franchise Disclosure Document, the Virginia addendum addresses the issue of franchisees disclaiming reliance on statements made by the franchisor or its representatives. Specifically, it states that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor. This provision takes precedence over any conflicting terms in other documents related to the franchise agreement. This protection remains in effect as long as the relevant state law is valid.
For a prospective 1-800-GOT-JUNK? franchisee in Virginia, this addendum provides an important safeguard. It ensures that franchisees cannot inadvertently waive their rights to bring claims against the franchisor based on misrepresentations or fraudulent statements made during the franchise sales process. This is particularly relevant during the initial stages of the franchise relationship when franchisees may be asked to sign various documents and acknowledgments.
This type of addendum is designed to protect franchisees and ensure fair dealing by franchisors. By preventing the disclaimer of reliance, Virginia law aims to hold 1-800-GOT-JUNK? accountable for the accuracy and truthfulness of the information they provide to potential franchisees. This helps to create a more balanced relationship between the franchisor and franchisee, especially in situations where there may be a power imbalance.
It is important for prospective franchisees to carefully review the Virginia addendum and understand their rights under state law. They should also consult with an attorney to ensure they fully understand the implications of this provision and how it protects them during the franchise relationship with 1-800-GOT-JUNK?.