In North Dakota, can a franchisee waive claims under state franchise law or disclaim reliance on statements made by 1-800-GOT-JUNK? in connection with the franchise relationship?
1_800_Got_Junk 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 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, a North Dakota addendum modifies the standard franchise agreement to protect franchisees. Specifically, any statement, questionnaire, or acknowledgment signed by a franchisee at the start of their franchise relationship cannot waive claims under state franchise law. This includes claims related to fraud in the inducement.
Furthermore, the addendum ensures that franchisees cannot disclaim reliance on statements made by 1-800-GOT-JUNK?, its franchise sellers, or anyone acting on the company's behalf. This provision overrides any conflicting terms in other documents related to the franchise agreement.
In practical terms, this means that a 1-800-GOT-JUNK? franchisee in North Dakota retains their legal rights under state franchise law, even if they have signed documents that appear to waive those rights. They can still pursue claims against the franchisor for issues like misleading statements or fraud, and the franchisor cannot argue that the franchisee disclaimed reliance on their representations. This addendum provides an additional layer of protection for franchisees operating in North Dakota.