What is the condition for a 360 Painting franchisee to waive rights in the franchise agreement or related agreements?
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, a franchisee cannot waive claims under applicable state franchise law or disclaim reliance on statements made by the franchisor. This protection is in place to ensure franchisees are not unknowingly giving up their legal rights or ability to hold the franchisor accountable for their representations. This condition is applicable to franchisees in franchise registration states.
Specifically, the FDD states that no statement, questionnaire, or acknowledgment signed by a franchisee related to the start of the franchise can waive claims under state franchise law, including fraud, or disclaim reliance on statements by the franchisor or their representatives. This clause overrides any conflicting terms in any document signed in connection with the franchise agreement.
For franchisees in Illinois, Section 41 of the Illinois Franchise Disclosure Act reinforces this protection, stating that any condition, stipulation, or provision that attempts to bind a person acquiring a franchise to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void. Similarly, for franchisees in New York, no representation or acknowledgment by the franchisee in the Franchise Agreement can act as a release, assignment, novation, waiver or estoppel which would relieve a person from any duty or liability imposed by Article 33, Sections 680 through 695, of the General Business Law of the State of New York and the regulations issued thereunder.
These provisions are designed to protect franchisees from overreaching by the franchisor and ensure they retain their rights under state laws, particularly in matters of fraud or misrepresentation. Prospective franchisees should carefully review these state-specific addenda to understand their rights and protections within their respective states.