Does the provision regarding fraud claims supersede other terms in All County franchise documents?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
No statement, questionnaire, or acknowledgement signed or agreed to by you 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 us, any franchise seller, or any other person acting on our behalf. 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, the provision addressing fraud claims does indeed supersede other terms within the franchise documents, but this is applicable to franchisees in specific states. For franchisees in Virginia, Maryland, California, and Illinois, any statement, questionnaire, or acknowledgment signed in connection with starting the franchise cannot waive claims under state franchise law, including fraud in the inducement.
This means that franchisees in these states retain their legal rights to pursue fraud claims, regardless of any agreements they may have signed. This protection ensures that All County franchisees cannot be forced to forfeit their right to claim fraud based on misrepresentations or omissions made by All County during the franchise sales process. This provision is designed to protect franchisees from unknowingly waiving their rights.
It is important to note that these specific superseding provisions are outlined in addenda applicable to franchises sold in California, Illinois, Maryland, and Virginia. Franchisees in other states may not have the same level of protection, so it's crucial to review the specific addendum for their state to understand their rights and obligations fully. Prospective franchisees should consult with a legal professional to fully understand the implications of these provisions and how they apply to their specific situation.