Does the Amerispec Inspection Services agreement disclaim representations made in the franchise disclosure document?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchise Questionnaires and Acknowledgements--No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Receipts--Any sale made must be in compliance with § 683(8) of the Franchise Sale Act (N.Y. Gen. Bus. L. § 680 et seq.), which describes the Rev. April 2, 2024 time period a Franchise Disclosure Document (offering prospectus) must be provided to a prospective franchisee before a sale may be made. New York law requires a franchisor to provide the Franchise Disclosure Document at the earliest of the first personal meeting, ten (10) business days before the execution of the franchise or other agreement, or the payment of any consideration that relates to the franchise relationship.
ADDENDUM TO FRANCHISE AGREEMENT FOR THE STATE OF NEW YORK
This Addendum relates to franchises sold in the state of New York and is intended to comply with New York statutes and regulations. In consideration of the execution of the Franchise Agreement (the "Agreement"), TCB AMERISPEC, LLC (the "Company") and Franchisee agree to amend the Agreement as follows:
- Section 19, Termination, is amended by adding the following language to the original language that appears therein:
Source: Item 23 — Receipts (FDD pages 47–172)
What This Means (2025 FDD)
According to Amerispec Inspection Services's 2025 Franchise Disclosure Document, the franchise agreement includes provisions that address disclaimers and waivers, particularly concerning reliance on statements made by the franchisor. For franchisees in New York, the FDD 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 statements made by the franchisor or anyone acting on their behalf. This specific provision supersedes any other conflicting terms in any document related to the franchise. This addendum ensures that franchisees in New York retain their rights to pursue claims based on misrepresentations made during the franchise sales process.
For prospective Amerispec Inspection Services franchisees in New York, this means that they cannot waive their right to sue the franchisor for fraud or misrepresentation based on statements made during the franchise sales process. This protection is significant because it prevents the franchisor from using standard contract clauses to shield themselves from liability for misleading information provided to induce the franchisee to invest. The New York addendum strengthens the franchisee's position by ensuring they can hold Amerispec Inspection Services accountable for the accuracy and truthfulness of their representations.
In California, the Franchise Agreement requires franchisees to sign a general release if they transfer their franchise. However, California Corporations Code voids any waiver of rights under the Franchise Investment Law or the Franchise Relations Act. This ensures that franchisees in California do not inadvertently give up their legal protections when transferring their franchise. These state-specific addenda highlight the importance of franchisees understanding their rights under state laws, as these laws can modify or invalidate certain provisions of the standard franchise agreement.
These stipulations are crucial for prospective franchisees as they provide legal recourse against potential misrepresentations or unfair practices by Amerispec Inspection Services. Franchisees should consult with an attorney to fully understand their rights and protections under the franchise agreement and applicable state laws, especially concerning disclaimers, waivers, and releases.