What is the effect of a statement signed by a franchisee in connection with the commencement of the All County franchise relationship?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
r the right to rely upon any statement made or information provided by the franchisor, broker, or other person acting on behalf of the franchisor that was a material inducement to a franchisee's investment. This provision supersedes any other or inconsistent term of any document executed in connection with the franchise.
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- 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. See NASAA STATEMENT OF POLICY REGARDING THE USE OF FRANCHISE QUESTIONNAIRES AND ACKNOWLEDGMENTS.
In all other respects, the Franchise Agreement will be construed and enforced according to its terms. Each of the undersigned hereby acknowledges having read and understood this Addendum and consents to be bound by all of its terms.
FRANCHISE AGREEMENT FOR THE STATE OF CALIFORNIA
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All County Property Management Franchise Corp.
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| [FRANCHISEE BUSINESS ENTITY] |
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ADDENDUM TO ALL COUNTY® FRANCHISE DISCLOSURE DOCUMENT FOR THE STATE OF HAWAII
To the extent the Hawaii Franchise Investment Law, Hawaii Rev. Stat. §§482E-1 – 482E-12 applies, the terms of this Addendum apply.
THESE FRANCHISES WILL BE/HAVE BEEN FILED UNDER THE FRANCHISE INVESTMENT LAW OF THE STATE OF HAWAII. FILING DOES NOT CONSTITUTE APPROVAL, RECOMMENDATION OR ENDORSEMENT BY THE DIRECTOR OF COMMERCE AND CONSUMER AFFAIRS OR A FINDING BY THE DIRECTOR OF COMMERCE AND CONSUMER AFFAIRS THAT THE INFORMATION PROVIDED HEREIN IS TRUE, COMPLETE AND NOT MISLEADING.
THE FRANCHISE INVESTMENT LAW MAKES IT UNLAWFUL TO OFFER OR SELL ANY FRANCHISE IN THIS STATE WITHOUT FIRST PROVIDING TO THE PROSPECTIVE FRANCHISEE, AT LEAST SEVEN DAYS PRIOR TO THE EXECUTION BY THE PROSPECTIVE FRANCHISEE OF ANY BINDING FRANCHISE OR OTHER AGREEMENT, OR AT LEAST SEVEN DAYS PRIOR TO THE PAYMENT OF ANY CONSIDERATION BY THE FRANCHISEE, WHICHEVER OCCURS FIRST, A COPY OF THE FRANCHISE DISCLOSURE DOCUMENT, TOGETHER WITH A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE.
THIS FRANCHISE DISCLOSURE DOCUMENT CONTAINS A SUMMARY ONLY OF CERTAIN MATERIAL PROVISIONS OF THE FRANCHISE AGREEMENT.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, a statement, questionnaire, or acknowledgment signed by a franchisee at the start of their franchise relationship generally cannot waive certain rights. Specifically, such documents cannot waive claims under applicable state franchise law, including claims related to fraud in the inducement. Furthermore, these documents cannot disclaim reliance on statements made by All County, its franchise sellers, or anyone acting on their behalf. This protection is explicitly stated to supersede any other conflicting terms within any document signed in connection with the franchise agreement. These stipulations apply specifically to franchises sold in California, New York, and Virginia.
This provision is highly beneficial for prospective All County franchisees. It ensures that franchisees retain their legal rights and recourse options, even after signing various documents during the franchise commencement process. This prevents All County from using standardized forms to inadvertently strip franchisees of their ability to pursue legal action for issues like misleading statements or fraudulent inducement. The explicit mention of superseding other terms reinforces the priority of these protections.
However, it is important to note that these protections are explicitly mentioned for franchisees in California, New York, and Virginia. While the FDD does not explicitly state whether these protections apply in other states, prospective franchisees should clarify with All County whether similar protections are in place in their specific state. Franchisees should also consult with a legal professional to fully understand their rights and obligations under the franchise agreement and applicable state laws.