Does the Auntie Annes franchise agreement require a franchisee to waive reliance on any representation made in the most recent FDD?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
As you know, Auntie Anne's Franchisor SPV LLC ("we") and the franchisee identified below ("you") are preparing to enter into an Auntie Anne's® Franchise Agreement (the "Franchise Agreement") for the operation of an Auntie Anne's® franchise. The purpose of this Acknowledgement is to determine whether any statements or promises were made to you that we have not authorized or that may be untrue, inaccurate or misleading, to be certain that you have been properly represented in this transaction, and to be certain that you understand the limitations on claims you may make by reason of the purchase and operation of your franchise. You cannot sign or date this Acknowledgement the same day as the Receipt for the Franchise Disclosure Document, but you must sign and date it the same day you sign the Franchise Agreement and pay your franchise fee.
Please review each of the following statements carefully and initial by each providing your acknowledgement that the statement is accurate and true. If you find that a statement is not accurate and true, please cease signing this Acknowledgement and related documents and immediately e-mail Tim Goodman, Senior Vice President of Franchise Administration, at tgoodman@gotofoods.com and provide an explanation of why you believe such statement is not accurate and true.
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to Auntie Anne's 2024 Franchise Disclosure Document, the franchise agreement includes an acknowledgement form that the franchisee must sign. This acknowledgement aims to confirm that no unauthorized or misleading statements were made to the franchisee during the franchise sales process. It also serves to ensure the franchisee understands the limitations on claims they can make regarding the purchase and operation of their Auntie Annes franchise.
The acknowledgement requires the franchisee to confirm the accuracy and truthfulness of several statements. If a franchisee finds any statement to be inaccurate or untrue, they are instructed to cease signing the acknowledgement and related documents and immediately notify Auntie Annes' Senior Vice President of Franchise Administration via email, explaining the reasons for their belief.
However, the FDD also includes addenda for specific states like California, Illinois, and Washington, which address waivers and legal rights. For example, California law voids waivers of rights under the Franchise Investment Law and Franchise Relations Act. Similarly, Washington law states that a franchisee's release or waiver of rights is only valid under specific conditions, such as being part of a negotiated settlement with independent counsel after the franchise agreement is in effect. Illinois law specifies that any provision binding a person to waive compliance with the Illinois Franchise Disclosure Act or any other state law is void, and it removes a section from the franchise agreement for Illinois franchisees.