If an All County employee made a statement about earnings, does that override the FDD?
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, certain acknowledgments signed by a franchisee cannot disclaim reliance on statements made by All County, its sellers, or anyone acting on its behalf. Specifically, for franchises in New York and Virginia, no statement, questionnaire, or acknowledgment can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor or its representatives. This provision takes precedence over any conflicting terms in other documents related to the franchise agreement.
This means that if an All County franchise seller or another person acting on behalf of All County makes a statement, a franchisee in New York or Virginia is not prevented from making claims based on those statements, even if they signed an agreement that seems to contradict this right. This protects franchisees from potentially misleading information provided during the franchise sales process.
For prospective All County franchisees, especially those in New York and Virginia, this clause is crucial. It ensures that any representations made by All County during the sales process can be relied upon, and the franchisee is not waiving their right to claim damages if those representations turn out to be false or misleading. This does not apply to Maryland.