Does the Alloy FDD specify any exceptions to the claims released by the Releasor?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
This General Release does not apply with respect to claims arising under the Washington Franchise Investment Protection Act, RW 19.100 and the rules adopted thereunder.
Exhibit I to the Alloy Disclosure Document STATE ADDENDA
RIDER TO STATE ADDENDUM
TO ALLOY®
FRANCHISE DISCLOSURE DOCUMENT, FRANCHISE AGREEMENT AND AREA DEVELOPMENT AGREEMENT
FOR THE FOLLOWING STATES ONLY: CALIFORNIA, HAWAII, ILLINOIS, INDIANA, MARYLAND, MICHIGAN, MINNESOTA, NEW YORK, NORTH DAKOTA, RHODE ISLAND, SOUTH DAKOTA, VIRGINIA, WASHINGTON, WISCONSIN
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to the 2025 Alloy FDD, there are exceptions to the claims released by the Releasor, varying by state. For franchisees in Washington, the general release does not apply to claims arising under the Washington Franchise Investment Protection Act, RW 19.100, and its rules.
For Illinois, the FDD states that no clause signed by a franchisee can waive any claim of fraud in the inducement or disclaim reliance on statements made by Alloy or its representatives that materially induced the franchisee's investment. This provision overrides any conflicting terms in other documents.
In Maryland, the FDD specifies that nothing in Section 15.B acts as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. Additionally, any provision requiring a franchisee to disclaim acts that would violate Maryland franchise law will not act as a release, estoppel, or waiver of liability under that law. Similarly to Illinois, Maryland protects franchisees from unknowingly waiving claims of fraud in the inducement based on statements by Alloy.