For All States M.E.D., what is the effect of statements not included in the Franchise Agreement?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
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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 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 23 — RECEIPTS (FDD pages 44–174)
What This Means (2024 FDD)
According to All States M.E.D.'s 2024 Franchise Disclosure Document, certain state addenda address the effect of statements not included in the franchise agreement. Specifically, the Illinois, New York, and North Dakota addenda state that no statement, questionnaire, or acknowledgment signed by a franchisee in connection with starting the franchise can waive claims under state franchise law, including claims related to fraud. These addenda also prevent franchisees from disclaiming reliance on statements made by All States M.E.D. or its representatives. This protection supersedes any conflicting terms in other documents related to the franchise agreement.
For a prospective All States M.E.D. franchisee, this means that any verbal promises or representations made by the franchisor or its agents during the sales process are not nullified simply because they are not written into the franchise agreement itself. This is particularly relevant in cases of alleged fraud or misrepresentation, where a franchisee might claim they were induced to invest based on promises that were never fulfilled. The addenda ensure that franchisees in Illinois, New York, and North Dakota retain their legal rights to pursue such claims, regardless of any waivers or disclaimers they may have signed.
It is important to note that these protections are specifically outlined in the Illinois, New York, and North Dakota addenda and may not apply in other states. Prospective franchisees should carefully review the addenda applicable to their state of residence to understand the full scope of their rights and protections. Franchisees should consult with an attorney to fully understand their rights under the franchise agreement and applicable state laws.