Can an All States M.E.D. franchisee disclaim reliance on statements made by the franchisor or its representatives?

According to All States M.E.D.'s 2024 Franchise Disclosure Document, whether a franchisee can disclaim reliance on statements made by the franchisor or its representatives depends on the state in which the franchise is located. In general, All States M.E.D. franchisees acknowledge that they are entering the agreement based on their own investigation and not solely on guarantees from the franchisor. However, certain state laws, specifically in Illinois and New York, prevent franchisees from waiving claims of reliance on statements made by the franchisor.

For franchisees in Illinois, the Illinois Addendum to the Disclosure Document states that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on any statement made by the franchisor or its representatives. This provision supersedes any other conflicting term in any document related to the franchise agreement. A similar provision exists for franchisees in New York.

This means that even if an All States M.E.D. franchisee signs an agreement stating they did not rely on the franchisor's statements, they may still have legal recourse based on those statements if they are located in Illinois or New York. This protection is designed to prevent franchisors from making misleading claims to induce franchisees and then shielding themselves from liability. Prospective franchisees should consult with legal counsel to understand their rights and protections under state franchise laws.