Does the addendum for franchise registration states allow a 360 Painting franchisee to disclaim reliance on statements made by the franchisor?
360_Painting 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 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 42–46)
What This Means (2025 FDD)
According to the 2025 360 Painting Franchise Disclosure Document, the addendum for franchise registration states does not allow a 360 Painting franchisee to disclaim reliance on statements made by the franchisor. The document specifies 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 or their representatives. This provision takes precedence over any conflicting terms in other franchise documents. This protection applies to franchisees in franchise registration states.
This means that 360 Painting franchisees in franchise registration states retain their legal rights to pursue claims based on misrepresentations or fraudulent statements made by the franchisor during the franchise sales process. Franchisees are not bound by any agreement that attempts to waive these rights or disclaim reliance on the franchisor's statements. This safeguard is particularly important in states with franchise laws designed to protect franchisees from potential abuses by franchisors.
For a prospective 360 Painting franchisee, this addendum offers a degree of legal protection. It ensures that any promises or representations made by the franchisor during the sales process can be held accountable, and the franchisee cannot inadvertently waive their right to claim damages if those representations prove false or misleading. This provision promotes transparency and fairness in the franchise relationship, particularly in states with franchise registration laws.
It is important for prospective franchisees to carefully review the state-specific addenda in conjunction with the main body of the Franchise Disclosure Document and the franchise agreement. Understanding these state-specific protections can help franchisees make informed decisions and protect their interests throughout the franchise relationship with 360 Painting.