For Afuri Ramen Dumpling franchisees, what effect do signed statements, questionnaires, or acknowledgments have on waiving claims under state franchise law?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 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 50–189)
What This Means (2024 FDD)
According to the 2024 Afuri Ramen Dumpling FDD, any statement, questionnaire, or acknowledgment signed by a franchisee at the start of their franchise relationship does not waive their rights to make claims under state franchise law. This includes claims of fraud. Additionally, franchisees cannot disclaim reliance on statements made by Afuri Ramen Dumpling or anyone acting on their behalf. This protection supersedes any conflicting terms in any document related to the franchise agreement.
This means that even if an Afuri Ramen Dumpling franchisee signs a document that appears to waive their rights, that waiver will not be legally binding regarding state franchise law claims. This provision is designed to protect franchisees from inadvertently giving up their legal rights through standard paperwork. It ensures that franchisees retain the ability to pursue legal action if they believe they have been misled or defrauded.
For a prospective Afuri Ramen Dumpling franchisee, this is a beneficial provision. It offers a degree of security, knowing that they cannot unintentionally waive their rights under state franchise laws by signing standard documents. This protection can be particularly important in complex franchise agreements where the implications of certain clauses may not be immediately clear. Franchisees should still carefully review all documents and seek legal advice, but this clause provides an additional layer of security.