For All County franchises, does any statement signed by the franchisee disclaim reliance on any statement made by the franchisor or its representatives?
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 t
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, several addenda address the enforceability of statements signed by franchisees, particularly concerning reliance on franchisor representations. For franchisees in New York, Virginia, California, Illinois, and Maryland, the FDD explicitly states that no statement, questionnaire, or acknowledgment signed by a franchisee can disclaim reliance on statements made by All County or its representatives. This provision is designed to protect franchisees from inadvertently waiving their rights based on statements made during the franchise sales process. These stipulations supersede any conflicting terms in other franchise documents, reinforcing the franchisee's right to rely on information provided by the franchisor.
For prospective All County franchisees, this means that any document they sign at the commencement of the franchise relationship cannot be interpreted as a waiver of their right to claim they relied on statements made by the franchisor. This protection extends to claims of fraud in the inducement, ensuring that franchisees are not penalized for trusting the information provided by All County during the decision-making process. The inclusion of these clauses in the addenda for specific states highlights All County's effort to comply with varying state franchise laws and provide additional safeguards for franchisees.
However, it is important to note that these protections are specifically mentioned for franchisees in New York, Virginia, California, Illinois, and Maryland. Franchisees in other states should carefully review their franchise agreements and related documents to understand whether similar protections apply. If the FDD does not include a similar clause for their state, prospective franchisees should seek clarification from All County regarding their rights and protections against disclaiming reliance on franchisor statements. This ensures that all franchisees, regardless of their location, are fully aware of their legal standing and the enforceability of statements made during the franchise sales process.