Does the All States M.E.D. FDD specify any exceptions to the requirement that the Franchisee Disclosure Questionnaire be signed on the same day as paying the franchise fee?
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)
The 2024 All States M.E.D. Franchise Disclosure Document includes addenda for several states that address acknowledgements signed by a franchisee. Specifically, the Illinois Addendum states that no questionnaire signed by a franchisee in connection with the commencement of the franchise relationship shall waive any claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on any statement made by All States M.E.D. or anyone acting on their behalf. This provision supersedes any other term of any document executed in connection with the franchise. A similar provision is included in the New York addendum.
The North Dakota Addendum modifies provisions concerning choice of law, jurisdiction, and venue, replacing them with a requirement for arbitration before the American Arbitration Association for any claim related to the agreement. It also stipulates that any waiver of a trial by jury or punitive damages will not apply to North Dakota franchisees. Additionally, any requirement for a general release upon renewal is not applicable, and the prevailing party in any enforcement action is entitled to recover all costs and expenses, including attorney's fees, superseding any requirement for the franchisee to pay all enforcement costs.
The Minnesota Addendum prohibits All States M.E.D. from requiring litigation outside of Minnesota, waiver of a jury trial, or consent to liquidated damages or termination penalties. It also ensures the franchisee's rights under Minnesota Statutes, Chapter 80C, and their rights to any procedure, forum, or remedies provided by law. The addendum also addresses the franchisor's duty to protect the franchisee's trademark rights and comply with notice requirements for termination and non-renewal, as well as prohibiting requirements for general releases or consent to the franchisor obtaining injunctive relief.