For All States M.E.D. franchisees in North Dakota, what happens if a franchise agreement term conflicts with the provision about waiving claims or disclaiming reliance?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
NORTH DAKOTA ADDENDUM TO THE FRANCHISE AGREEMENT
If any of the terms of the Franchise Agreement are inconsistent with the terms below, the terms below control.
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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)
According to the 2024 All States M.E.D. Franchise Disclosure Document, specifically the North Dakota Addendum to the Franchise Agreement, the terms outlined in the addendum take precedence over any conflicting terms in the standard franchise agreement. This means that if a term in the original franchise agreement is inconsistent with the provisions in the North Dakota Addendum, the terms of the addendum will govern the relationship between All States M.E.D. and the franchisee in North Dakota.
Specifically, the addendum states that no statement, questionnaire, or acknowledgment signed by the franchisee related to the start of the franchise 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 protection is significant for franchisees as it ensures they cannot inadvertently forfeit their legal rights through standard paperwork at the beginning of the franchise relationship.
This provision is designed to protect franchisees from potentially overreaching terms in the standard franchise agreement that might compromise their rights under North Dakota law. It ensures that franchisees retain their ability to pursue legal claims, especially those related to misrepresentation or fraud, regardless of any waivers or disclaimers they might have signed initially. This aspect of the addendum provides an additional layer of security for franchisees operating in North Dakota.