Can an All Team franchisee disclaim reliance on any statement made by the franchisor in Minnesota?
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 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, a franchisee in Minnesota cannot disclaim reliance on statements made by the franchisor. Specifically, the Minnesota State Law Addendum included in the franchise agreement clarifies that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor or its representatives. This provision takes precedence over any conflicting terms in other documents related to the franchise agreement.
This protection ensures that All Team franchisees in Minnesota retain their legal rights and recourse against the franchisor, even if they have signed documents that might suggest otherwise. This means that if a franchisee believes they were misled by statements made by All Team during the franchise sales process, they can still pursue legal action, and any prior agreements to disclaim reliance on those statements will not be enforceable.
This type of provision is designed to protect franchisees from potentially overreaching franchisors and ensure a fair balance of power in the franchise relationship. Prospective All Team franchisees in Minnesota should be aware of this protection and understand that they cannot inadvertently waive their rights through standard franchise documents.