What is the effect of a franchisee's acknowledgement regarding reliance on statements made by Aerus in California?
Aerus 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 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, a franchisee's acknowledgement, questionnaire, or statement does not waive claims under California franchise law. This includes claims of fraud in the inducement. It also means a franchisee cannot disclaim reliance on statements made by Aerus, franchise sellers, or anyone acting on Aerus's behalf. This protection applies to statements made in connection with the commencement of the franchise relationship.
This provision is designed to protect franchisees in California. It ensures that franchisees can pursue legal claims if they believe they were misled or defrauded by Aerus during the franchise sales process. The statement also overrides any conflicting terms in other documents related to the franchise agreement. This means that even if a franchisee signs a document that appears to waive these rights, the waiver will not be enforced under California law.
For a prospective Aerus franchisee in California, this is a significant protection. It means that any representations made by Aerus during the sales process can be relied upon, and the franchisee will not be prevented from bringing a claim based on those representations. This helps to ensure transparency and fairness in the franchise relationship. Franchisees should still conduct thorough due diligence and seek legal advice before investing in a franchise, but this provision provides an additional layer of security.
It is important to note that this provision specifically applies to California franchise law. Franchisees in other states may not have the same protections. Therefore, prospective franchisees should carefully review the franchise disclosure document and seek legal advice to understand their rights and obligations under the franchise agreement and applicable state law.