Regarding the Afuri Ramen Dumpling franchise agreement, to what extent are the representations and acknowledgments in Section 9.15 of the Franchise Agreement deleted?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
The representations and acknowledgments in Section 9.15 of the Franchise Agreement (entitled "Additional Representations and Acknowledgments") are hereby deleted to the extent they are not permissible or enforceable under applicable state franchise laws.
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 Franchise Disclosure Document, Section 9.15 of the Franchise Agreement, entitled "Additional Representations and Acknowledgments," is deleted to the extent that any part of it is not permissible or enforceable under the applicable state franchise laws. This means that certain representations and acknowledgments that a franchisee might make, which could limit their rights or claims against Afuri Ramen Dumpling, are removed if they conflict with state franchise laws.
This deletion ensures that franchisees are not bound by acknowledgments or representations that would waive their rights under state franchise laws, including claims of fraud. Furthermore, no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law or disclaim reliance on statements made by Afuri Ramen Dumpling or its representatives. This provision is designed to protect franchisees from inadvertently giving up their legal rights.
This aspect of the Afuri Ramen Dumpling franchise agreement is particularly important for prospective franchisees. It clarifies that franchisees retain the protections afforded to them by state franchise laws, regardless of any acknowledgments they may sign. This helps to ensure a fairer balance of power between the franchisor and franchisee, preventing Afuri Ramen Dumpling from enforcing terms that would otherwise be contrary to public policy and state regulations. Franchisees should still carefully review all documents and seek legal advice to fully understand their rights and obligations.