Is a franchisee's signed statement at the start of the franchise relationship with Alloy considered a waiver?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
*All representations requiring prospective franchisees to assent to a release, estoppel or waiver of liability are not intended nor shall they act as a release, estoppel or waiver of liability incurred under the California Franchise Investment Law, Maryland Franchise Registration and Disclosure Law, the Illinois Franchise Disclosure Act, or the Franchise Investment Protection Act of Washington.
Exhibit C to the Alloy Disclosure Document
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, in several states, a franchisee's signed statement at the commencement of the franchise relationship will not be construed as a waiver of certain claims. Specifically, for franchisees in California, Maryland, Illinois, and Washington, representations requiring them to release, estop, or waive liability will not act as a release, estoppel, or waiver of liability incurred under their respective state franchise laws. This protection ensures that franchisees in these states retain their rights and recourse under state franchise laws, regardless of any statements they may sign at the beginning of their franchise relationship with Alloy.
For Maryland franchisees, the FDD includes additional stipulations. No disclaimer, questionnaire, clause, or statement signed by a franchisee in connection with the commencement of the franchise relationship can be interpreted as waiving any claim of fraud in the inducement, whether based on common law or statute. Furthermore, franchisees cannot disclaim reliance on statements or information provided by Alloy or its representatives that materially induced their investment. This provision explicitly supersedes any other conflicting terms in any document executed concerning the franchise, reinforcing the protection afforded to Maryland franchisees.
Similarly, Minnesota franchisees benefit from comparable safeguards. The FDD states that no disclaimer, questionnaire, clause, or statement signed by a franchisee at the start of the franchise relationship can be construed as waiving any claim of fraud in the inducement or as disclaiming reliance on statements made by Alloy or its brokers. This protection is reinforced by the declaration that this provision supersedes any other inconsistent term in any document related to the franchise. These stipulations collectively ensure that Alloy franchisees in covered states are not inadvertently or unknowingly waiving their rights through standard documentation at the outset of their franchise agreement.