How are disclaimers signed by an Alloy franchisee construed in connection with the commencement of the franchise relationship?

According to Alloy's 2025 Franchise Disclosure Document, disclaimers, questionnaires, clauses, or statements signed by a franchisee during the commencement of their franchise relationship are specifically addressed to protect the franchisee's rights regarding fraud claims. These documents cannot be interpreted as a waiver of any claim of fraud in the inducement, whether based on common law or statutory grounds. This means that Alloy franchisees retain the right to pursue legal action if they believe they were fraudulently induced into investing in the franchise.

Furthermore, these disclaimers cannot be construed as disclaiming reliance on, or the right to rely upon, any statement or information provided by Alloy, its brokers, or any other person acting on Alloy's behalf, if that statement or information was a material inducement to the franchisee's investment. This ensures that franchisees are protected from misleading or false information that may have influenced their decision to invest. This protection is in place to ensure that Alloy franchisees can hold the franchisor accountable for the accuracy and truthfulness of the information provided during the franchise sales process.

This provision in the Alloy FDD supersedes any other conflicting terms in any document executed in connection with the franchise. This means that even if other documents contain language that could be interpreted as a waiver of these rights, this specific provision takes precedence, reinforcing the protection afforded to the franchisee. This clause is included in addenda for several states, including California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin, indicating a broad effort to ensure franchisee rights are protected across various jurisdictions.