For All States M.E.D., what is the franchisee agreeing to regarding statements made by the franchisor?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee represents and acknowledges that it has not received or relied on any guarantee, express or implied, as to the revenues, profits or likelihood of success of the Franchised Business. Franchisee represents and acknowledges that there have been no representations by Franchisor's officers, directors, employees or agents that are not contained in, or are inconsistent with, the statements made in the Franchise Disclosure Document or this Agreement.
| Yes | No | 10. | Do you agree that no employee or other person speaking on our behalf has made any statement, promise, or agreement, that is contrary to or different from what is stated in the Franchise Disclosure Document and Franchise Agreement? |
|---|---|---|---|
| Yes | No | 11. | Do you agree that no employee or other person speaking on our behalf |
| made any statement or promise regarding the actual, average or | |||
| projected profits or earnings, the likelihood of success, the amount of | |||
| money you may earn, or the total amount of revenue you will generate, | |||
| that is not contained in Item 19 of the Franchise Disclosure Document | |||
| or that is contrary to, or different from, the information contained in | |||
| Item 19 of the Franchise Disclosure Document, and that you have not | |||
| made a decision to purchase your franchise based on any such | |||
| representations? | |||
| Yes | No | 12. | Do you understand that the Franchise Agreement and attachments to the |
| Franchise Agreement contain the entire agreement between us and you | |||
| concerning this franchise, meaning any prior oral or written statements | |||
| not set out in the Franchise Agreement or the attachments to the | |||
| Franchise Agreement will not be binding? | |||
| All representations requiring prospective franchisees to assent to a release, estoppel or | |||
| waiver of any liability are not intended to nor shall they act as a release, estoppel or waiver of any | |||
| liability incurred under the Maryland Franchise Registration and Disclosure Law | |||
| or Washington | |||
| Franchise Investment Protection Act. | |||
| connection with the franchise. | 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 |
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, the franchisee acknowledges several key points regarding statements and representations made by the franchisor. The franchisee agrees that they have not relied on any guarantees, express or implied, regarding the potential revenues, profits, or likelihood of success of the All States M.E.D. franchised business. This means All States M.E.D. is not providing any assurances of specific financial outcomes.
Furthermore, the franchisee acknowledges that they have not relied on any representations made by All States M.E.D.'s officers, directors, employees, or agents that are not contained in the Franchise Disclosure Document (FDD) or the Franchise Agreement itself. This is a standard clause to ensure that the written agreements are the sole source of binding information. Any verbal promises or representations outside of these documents are not binding on All States M.E.D.
In a questionnaire included in the FDD, the franchisee must agree that no employee or person acting on behalf of All States M.E.D. has made any statement, promise, or agreement that contradicts or differs from what is stated in the FDD and Franchise Agreement. They also agree that no one has made statements or promises regarding actual, average, or projected profits, earnings, likelihood of success, or revenue amounts that are not in Item 19 of the FDD or that contradict Item 19. The franchisee confirms that their decision to purchase the franchise was not based on any such unauthorized representations. This reinforces the importance of relying solely on the documented information provided in the FDD and the agreement.
However, the FDD also notes that certain statements, questionnaires, or acknowledgments signed by the franchisee cannot waive claims under applicable state franchise laws, including claims of fraud in the inducement, or disclaim reliance on statements made by All States M.E.D. or its representatives. This provision is included to comply with franchise laws in states like Maryland and Washington, ensuring that franchisees retain their legal rights despite any agreements to the contrary. Additionally, specific addenda for states like New York and North Dakota modify or supersede certain provisions to comply with local laws, further protecting the franchisee's rights.