What happens if there's an inconsistency between the Alloy Franchise Agreement and any other document regarding reliance on statements made by the franchisor?

According to Alloy's 2025 Franchise Disclosure Document, specifically within the California Addendum, a specific provision addresses inconsistencies regarding reliance on franchisor statements. The addendum states 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 any statement made by Alloy, its sellers, or representatives. This clause is designed to protect franchisees from unknowingly relinquishing their rights to claim fraud based on misrepresentations.

This provision explicitly overrides any conflicting terms in any document executed in connection with the franchise. This means that if any other agreement or document related to the Alloy franchise contains language that contradicts this protection, the language in the California Addendum will take precedence. This ensures that franchisees in California, or those governed by California law, retain their right to pursue claims of fraud based on statements made by Alloy, regardless of other contractual terms.

For a prospective Alloy franchisee, this is a crucial safeguard. It means that even if you sign documents containing disclaimers or waivers, you still maintain the right to claim fraud if you relied on misleading statements from Alloy during the franchise sales process. This protection is particularly important in the context of franchise agreements, which often contain extensive legal language and may be difficult for non-lawyers to fully understand. Franchisees should still carefully review all documents and seek legal advice, but this provision offers an additional layer of security against potential misrepresentations.