factual

For Auntie Annes franchises in Hawaii, what effect do statements, questionnaires, or acknowledgements signed by the franchisee have on waiving claims under state franchise law or disclaiming reliance on statements made by the franchisor?

Auntie_Annes Franchise · 2024 FDD

Answer from 2024 FDD Document

  1. Item 17 shall be supplemented by the addition of the following language at the end of the Item:

No statement, questionnaire, or acknowledgement signed or agreed to by you 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 us, any franchise seller, or any other person acting on our behalf. This provision supersedes any other term of any document executed in connection with the franchise.

Source: Item 22 — CONTRACTS (FDD page 106)

What This Means (2024 FDD)

According to Auntie Annes's 2024 Franchise Disclosure Document, franchisees in Hawaii are protected by a specific addendum that prevents them from unintentionally waiving their rights under state franchise law.

Specifically, any statement, questionnaire, or acknowledgment signed by the franchisee related to the start of the franchise relationship cannot waive claims under Hawaii's franchise law. This includes claims of fraud related to inducing the franchisee to invest. Furthermore, these documents cannot disclaim reliance on statements made by Auntie Annes, its franchise sellers, or anyone acting on their behalf.

This provision in the Hawaii addendum overrides any other conflicting terms in any document signed in connection with the franchise agreement, ensuring that franchisees retain their legal rights and protections under Hawaii state law, regardless of any agreements or acknowledgments they may sign. This protection is particularly important for franchisees as it prevents Auntie Annes from using standardized documents to inadvertently limit their liability or exposure under Hawaii franchise laws.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.