In which states do the representations requiring prospective Alloy franchisees to assent to a release, estoppel or waiver of liability NOT act as a release, estoppel or waiver of liability?
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.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, certain states have laws that prevent waivers of liability. Specifically, representations requiring prospective franchisees to agree to a release, estoppel, or waiver of liability will not be enforced as such in California, Maryland, Illinois, and Washington. This means that even if a franchisee signs a document intending to release Alloy from liability, that release may not be legally binding in these states under certain circumstances.
This protection is particularly relevant concerning the franchise investment laws of these states. These laws are designed to protect franchisees from unfair practices by franchisors. The FDD indicates that these states do not allow a franchisee to waive their rights under these laws, ensuring that franchisees retain the ability to pursue legal action if they believe Alloy has violated the law.
For prospective Alloy franchisees in these states, this is a beneficial provision. It means that they cannot inadvertently waive their rights under franchise investment laws by signing standard franchise agreements. This protection helps ensure that Alloy franchisees in California, Maryland, Illinois, and Washington retain legal recourse in case of disputes or violations of franchise law.