Does the All Team franchise agreement supersede any terms in other documents related to the franchise regarding the waiver of claims under state franchise law?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
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 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the franchise agreement aims to protect franchisees from unintentionally waiving their rights under state franchise laws. Specifically, the FDD states that no statement, questionnaire, or acknowledgment signed by a franchisee at the start of their franchise relationship can waive claims under applicable state franchise law, including claims of fraud. This protection extends to disclaiming reliance on statements made by All Team or its representatives.
This provision is designed to take precedence over any conflicting terms in other documents related to the franchise. This means that even if other agreements contain language that could be interpreted as a waiver of these rights, this specific clause ensures that franchisees retain their legal protections under state franchise laws. This is particularly relevant in states with strong franchise protection laws, such as Illinois, Minnesota, New York, and Virginia, where specific addenda are included to ensure compliance with local regulations.
For a prospective All Team franchisee, this is a significant safeguard. It means that you cannot inadvertently forfeit your rights through standard paperwork or acknowledgments during the initial stages of the franchise relationship. Should any conflict arise, this clause prioritizes your rights under state franchise law, offering a degree of legal security. All Team franchisees should still carefully review all documents and seek legal counsel to fully understand their rights and obligations, but this provision offers an additional layer of protection.
It's important to note that while this provision aims to protect franchisees, it does not prevent them from entering into settlements or releases of claims later on, after a dispute has arisen and with the benefit of legal counsel. The protection applies primarily to the initial phase of establishing the franchise relationship, ensuring that franchisees are not pressured into unknowingly relinquishing their rights at the outset.