Does the Aerus franchise agreement disclaim any express representations made by the company in the Franchise Disclosure Document?
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, the franchise agreement includes an addendum that addresses waivers and disclaimers related to state franchise laws and statements made by the franchisor. Specifically, 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 Aerus or its representatives. This addendum supersedes any conflicting terms in other documents related to the franchise agreement.
This provision protects franchisees by preventing Aerus from enforcing waivers or disclaimers that would undermine a franchisee's rights under state franchise laws. It ensures that franchisees can rely on the statements and representations made by Aerus during the franchise sales process, without fear of those statements being disclaimed later. This is a significant benefit for prospective franchisees, as it provides a legal basis for claims of misrepresentation or fraud if the information provided by Aerus proves to be false or misleading.
In essence, this clause aims to create a fairer balance of power between Aerus and its franchisees. It prevents Aerus from using contractual language to shield itself from liability for misstatements or omissions made during the franchise sales process. This protection is particularly important in states with strong franchise laws, as it reinforces the franchisee's ability to seek legal recourse if they believe they were misled into investing in the franchise.