What is the All Team franchisee acknowledging and agreeing to regarding ATFC's reliance on representations?
All_Team Franchise · 2025 FDDAnswer 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.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, franchisees in Minnesota, and Virginia are protected by state laws that prevent them from disclaiming reliance on statements made by All Team or its representatives. Specifically, these laws ensure that franchisees cannot waive claims, including those related to fraud in the inducement, based on statements made during the franchise sales process. This protection is crucial for franchisees as it allows them to hold All Team accountable for any misrepresentations or false promises made to induce them into signing the franchise agreement.
For a prospective All Team franchisee, this means that any statements made by All Team during the sales process can be relied upon, and the franchisee retains the right to pursue legal action if those statements prove to be false or misleading. This safeguard is particularly important in the context of franchise sales, where franchisees often rely heavily on the franchisor's representations about the potential profitability and success of the franchise.
It is important to note that these protections are specific to franchisees located in Virginia and Minnesota, as indicated by the addenda in the FDD. Franchisees in other states may not have the same level of protection and may be subject to different legal standards regarding reliance on representations made by the franchisor. Therefore, prospective franchisees should carefully review the franchise laws in their respective states to understand their rights and obligations.