What is the significance of the statement that no statement signed by a franchisee in connection with the Aerus franchise relationship shall have the effect of waiving any claims under any applicable state franchise law?
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 critical provision protects franchisees by ensuring they cannot unintentionally waive their rights under state franchise laws. Specifically, any statement, questionnaire, or acknowledgment signed by a franchisee at the start of their franchise relationship cannot be interpreted as a waiver of claims under applicable state franchise law. This includes claims related to fraud in the inducement, meaning a franchisee cannot waive their right to sue if they believe Aerus misled them into investing in the franchise. This protection extends to disclaiming reliance on statements made by Aerus or its representatives.
This clause is significant because it prevents Aerus from using standard form documents to strip franchisees of their legal rights. Franchise agreements often contain numerous clauses, and franchisees might inadvertently sign away important protections without fully understanding the implications. This provision ensures that franchisees retain their ability to pursue legal remedies if Aerus violates state franchise laws. It also reinforces that franchisees can rely on the information provided by Aerus during the franchise sales process.
This type of protection is particularly important in franchising, where there can be a power imbalance between the franchisor and franchisee. State franchise laws are designed to protect franchisees from unfair practices, and this clause ensures those protections remain in place. The provision explicitly states that it supersedes any other conflicting terms in any document executed in connection with the franchise, further solidifying its importance. Prospective Aerus franchisees should view this as a positive sign, indicating that Aerus is committed to fair dealing and compliance with franchise regulations.