In California, is All County allowed to deny violations of the law?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
CALIFORNIA'S FRANCHISE INVESTMENT LAW (CORPORATION CODE SECTIONS 31512 AND 31512.1) STATES THAT ANY PROVISION OF A FRANCHISE AGREEMENT OR RELATED DOCUMENT REQUIRING THE FRANCHISEE TO WAIVE SPECIFIC PROVISIONS OF THE LAW IS CONTRARY TO PUBLIC POLICY AND IS VOID AND UNENFORCEABLE. THE LAW ALSO PROHIBITS A FRANCHISOR FROM DISCLAIMING OR DENYING (i) REPRESENTATIONS IT, ITS EMPLOYEES, OR ITS AGENTS MAKE TO YOU, (ii) YOUR ABILITY TO RELY ON ANY REPRESENTATIONS IT MAKES TO YOU, OR (iii) ANY VIOLATIONS OF THE LAW.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, California's Franchise Investment Law states that All County cannot disclaim or deny certain things related to the franchise agreement. Specifically, All County is prohibited from denying representations made to the franchisee, the franchisee's ability to rely on those representations, or any violations of the law. This protection is in place to ensure that All County franchisees in California are not subject to waivers that could compromise their legal rights under the franchise agreement.
This provision means that any clause in the All County franchise agreement that attempts to waive the franchisee's right to claim violations of the law is unenforceable in California. This ensures that franchisees can hold All County accountable for any misrepresentations or breaches of the law. The franchisee's ability to rely on statements made by All County is also protected, preventing All County from later denying the validity of those statements.
For a prospective All County franchisee in California, this is a significant protection. It means that the franchisee cannot be forced to waive their rights under the California Franchise Investment Law, and All County cannot deny its own representations or any violations of the law. This provision aims to create a fairer balance of power between the franchisor and franchisee, ensuring that franchisees have recourse if All County acts unlawfully or makes false claims. Franchisees should consult with legal counsel to fully understand their rights and protections under California law.