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What is the effect of an acknowledgment signed by a franchisee in connection with the commencement of the All County franchise relationship?

Q: What is the effect of an acknowledgment signed by a franchisee in connection with the commencement of the All County franchise relationship?

- 4. No statement, questionnaire or acknowledgement 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 behalf of the Franchisor. This provision supersedes any other term of any document executed in connection with the franchise. - 5. Except as amended herein, the Franchise Agreement will be construed and enforced in accordance with its terms. Source: Item 22 — Contracts (FDD page 43)

All_County Franchise · 2025 FDD

Answer from 2025 FDD Document

1. No statement, questionnaire or acknowledgement 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 behalf of the Franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
1. Except as amended herein, the Franchise Agreement will be construed and enforced in accordance with its terms.

Source: Item 22 — Contracts (FDD page 43)

What This Means (2025 FDD)

According to All County's 2025 Franchise Disclosure Document, an acknowledgment signed by a franchisee at the start of the franchise relationship does not waive certain rights. Specifically, such an acknowledgment cannot waive claims under state franchise law, including claims related to fraud in the inducement. Additionally, it cannot disclaim reliance on statements made by All County, its franchise sellers, or anyone acting on their behalf. This protection is highlighted in addenda for franchisees in California, New York, and Virginia. This provision takes precedence over any conflicting terms in other documents related to the franchise agreement.

This means that even if an All County franchisee signs a document acknowledging certain conditions or statements, they still retain their legal rights under applicable state franchise laws. For example, if a franchisee believes they were misled by All County during the franchise sales process, the acknowledgment they signed will not prevent them from pursuing a fraud claim. Similarly, franchisees can't disclaim reliance on statements made by All County.

It is important to note that the FDD includes specific disclaimers for residents of Maryland, stating that they should not sign the Acknowledgment Addendum if they are a resident of Maryland or if the business is to be operated in Maryland. This suggests that Maryland franchise law may offer different or additional protections to franchisees, and All County is ensuring compliance with those regulations. Prospective franchisees should carefully review all addenda and disclosures specific to their state to fully understand their rights and obligations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.

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