Does the All States M.E.D. FDD specify any conditions under which the Franchisee Disclosure Questionnaire may be amended?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
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)
The 2024 All States M.E.D. Franchise Disclosure Document includes addenda for several states that address the enforceability and interpretation of franchise questionnaires and acknowledgements. Specifically, the Illinois addendum states that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by All States M.E.D. or its representatives. This provision overrides any conflicting terms in other documents.
Similarly, the New York addendum states that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by All States M.E.D. or its representatives. This provision supersedes any other term of any document executed in connection with the franchise.
These stipulations ensure that franchisees in Illinois and New York retain their rights under state franchise laws and are not bound by waivers or disclaimers that might otherwise limit their legal recourse. This is a protective measure for franchisees, preventing franchisors from using questionnaires or acknowledgements to circumvent state franchise laws. Prospective franchisees should be aware of these protections and understand that their rights under state law cannot be waived through such documents.