For Afuri Ramen Dumpling franchisees, can any statement, questionnaire, or acknowledgment signed at the start of the franchise relationship waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor?
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 Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, any statement, questionnaire, or acknowledgment signed by a franchisee at the start of the franchise relationship cannot waive claims under state franchise law. This includes claims related to fraud in the inducement. Additionally, franchisees cannot disclaim reliance on statements made by Afuri Ramen Dumpling, its franchise sellers, or anyone acting on its behalf. This provision takes precedence over any conflicting terms in any document associated with the franchise agreement. This means that even if a franchisee signs a document that appears to waive these rights, the waiver will not be enforceable.
This protection ensures that franchisees retain their legal rights under state franchise laws, preventing Afuri Ramen Dumpling from using contractual language to shield itself from liability for misrepresentations or fraudulent behavior. It also allows franchisees to rely on the information provided by the franchisor during the franchise sales process without fear of being penalized for that reliance later on. This is a significant benefit for franchisees, as it provides a legal recourse if they believe they were misled or defrauded by the franchisor.
Many states have franchise laws in place to protect franchisees, and this clause reinforces those protections by preventing contractual waivers. Prospective Afuri Ramen Dumpling franchisees should be aware of this provision, as it offers an additional layer of security and recourse in case of disputes or misrepresentations. Franchisees should consult with an attorney to fully understand their rights under state franchise laws and how this provision applies to their specific situation.