Can a franchisee disclaim reliance on statements made by All County franchise sellers?
All_County Franchise · 2025 FDDAnswer from 2025 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 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, in certain states, franchisees cannot disclaim reliance on statements made by All County, franchise sellers, or anyone acting on All County's behalf. Specifically, for franchises subject to California, Virginia, Illinois, and Maryland statutes, any statement, questionnaire, or acknowledgment signed by a franchisee cannot waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by All County or its representatives. This provision overrides any conflicting terms in other franchise documents.
This means that All County franchisees in these states retain the right to pursue legal action based on misrepresentations or fraudulent statements made during the franchise sales process, even if they have signed documents that appear to waive such claims. This protection is particularly important because it prevents All County from using standard contract language to shield itself from liability for misleading information provided to potential franchisees.
For prospective All County franchisees, this safeguard offers some assurance that they can hold All County accountable for the accuracy and truthfulness of the information provided during the franchise sales process. It is important to note that these protections are specifically tied to state franchise laws and may not apply to other types of claims or disputes. Franchisees should consult with an attorney to fully understand their rights and obligations under the franchise agreement and applicable state laws.