factual

Does the All Team franchise agreement allow a franchisee to disclaim reliance on statements made by the franchisor or its representatives?

All_Team Franchise · 2025 FDD

Answer from 2025 FDD Document

No statement, questionnaire, or acknowledgement 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.

MINNESOTA STATE LAW ADDENDUM

Source: Item 22 — CONTRACTS (FDD pages 33–34)

What This Means (2025 FDD)

According to All Team's 2025 Franchise Disclosure Document, the franchise agreement does not allow a franchisee to disclaim reliance on statements made by All Team or its representatives. Specifically, no statement, questionnaire, or acknowledgment signed by a franchisee in connection with starting the franchise can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by All Team or its representatives. This provision takes precedence over any other conflicting terms in any document related to the franchise agreement. This protection is also reiterated in the Illinois State Law Addendum, ensuring that franchisees in Illinois also benefit from this provision.

This means that prospective All Team franchisees are protected from being bound by any agreement that would prevent them from pursuing claims based on misrepresentations or fraudulent statements made by All Team during the franchise sales process. This is a significant benefit for franchisees, as it ensures they can hold All Team accountable for the accuracy and truthfulness of the information provided to them.

This type of clause is not uncommon in franchise agreements, as many states have franchise laws designed to protect franchisees from overreaching by franchisors. These laws often include provisions that prevent franchisees from waiving their rights or disclaiming reliance on the franchisor's representations. The inclusion of such a clause in the All Team franchise agreement demonstrates a commitment to complying with these state laws and providing franchisees with certain legal protections.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.