Can an All States M.E.D. franchisee waive claims of fraud in the inducement under applicable state franchise law through a signed questionnaire?

According to All States M.E.D.'s 2024 Franchise Disclosure Document, a franchisee cannot waive claims of fraud in the inducement under applicable state franchise law by signing a questionnaire or acknowledgement related to the commencement of the franchise relationship. This protection is explicitly stated in Item 23, Receipts, which indicates that no statement, questionnaire, or acknowledgment can waive claims under state franchise law, including fraud in the inducement. This provision overrides any other conflicting terms in any document executed in connection with the franchise.

This safeguard ensures that All States M.E.D. franchisees retain their legal rights and protections under state franchise laws, specifically regarding claims of fraud. It prevents the franchisor from using questionnaires or acknowledgements to circumvent these legal protections. This means that even if a franchisee signs a document that appears to waive such claims, that waiver will not be legally enforceable.

Several state addenda reinforce this protection. For example, the Illinois Addendum explicitly states that any provision purporting to bind the franchisee to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void. Similarly, the North Dakota Addendum modifies provisions concerning choice of law, jurisdiction, and venue, ensuring that franchisees in North Dakota retain certain rights, such as the right to a trial by jury and the ability to recover costs and expenses, including attorney's fees, if they prevail in an enforcement action. These addenda, along with the general provision in Item 23, collectively ensure that franchisees are not pressured into unknowingly relinquishing their legal rights.