For 360 Painting franchisees in franchise registration states, what does the addendum supersede?
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 FDD, for 360 Painting franchisees in franchise registration states, the addendum ensures certain protections by superseding conflicting terms in other documents. Specifically, no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law, including claims of fraud. Additionally, franchisees cannot disclaim reliance on statements made by 360 Painting, its sellers, or representatives.
This means that any prior agreements or documents that might limit a franchisee's rights to sue for fraud or misrepresentation under state franchise laws are overridden by this addendum. This is particularly important in franchise registration states, which have specific laws in place to protect franchisees. The provision aims to prevent 360 Painting from using fine print or standardized forms to circumvent these state laws.
For a prospective 360 Painting franchisee, this addendum offers a degree of security. It ensures that they retain their legal rights under state franchise laws, regardless of any other documents they may have signed. This can be crucial if a franchisee believes they were misled or defrauded during the franchise sales process. The franchisee should consult with a legal professional to fully understand their rights and the implications of this addendum in their specific state.