Does the Virginia addendum to the All County Franchise Disclosure Document allow a franchisee to disclaim reliance on statements made by the franchisor?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
ADDENDUM TO ALL COUNTY® FRANCHISE DISCLOSURE DOCUMENT FOR THE STATE OF VIRGINIA
The following applies to franchises and franchisees subject to Virginia statutes and regulations.
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, the Virginia addendum ensures that franchisees cannot disclaim reliance on statements made by the franchisor. Specifically, any statement, questionnaire, or acknowledgment signed by a franchisee related to the start of the franchise relationship will not waive claims under state franchise law, including fraud, or disclaim reliance on statements made by All County or its representatives. This protection is explicitly stated to override any conflicting terms in other franchise documents.
This provision is beneficial for prospective All County franchisees in Virginia as it prevents them from inadvertently relinquishing their right to pursue legal action based on misleading or false statements made by the franchisor during the franchise sales process. This protection covers instances of fraud in the inducement, ensuring that franchisees can hold All County accountable for the accuracy and truthfulness of the information provided.
In practical terms, this means that if an All County franchisee in Virginia believes they were misled by the franchisor's representations, they can pursue a claim without being barred by a clause that might otherwise require them to disclaim reliance on those statements. This addendum strengthens the franchisee's position and promotes transparency and accountability in the franchise relationship. This type of protection is not uncommon and is designed to protect franchisees from overreaching by franchisors.