Does the Aw Franchise Agreement allow a franchisee to disclaim reliance on statements made by the franchisor or its representatives?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to the 2025 Aw Franchise Disclosure Document, the franchise agreement does not allow a franchisee to disclaim reliance on statements made by Aw or its representatives. The FDD states that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on any statement made by the franchisor or its representatives. This provision takes precedence over any other term in any document related to the franchise agreement. This protection is also reiterated specifically within the Rayyan Pizza Franchise LLC Addendum to Franchise Disclosure Document for the State of Illinois.
This means that Aw franchisees retain the right to pursue legal action based on misrepresentations or false statements made by Aw during the franchise sales process. This protection is particularly important for prospective franchisees as it ensures that they are not bound by clauses that could prevent them from seeking legal recourse if they believe they were misled.
This type of clause is intended to protect franchisees and ensure transparency and honesty in the franchise sales process. Franchisees should still conduct their own independent investigation and due diligence before investing in a franchise, but this provision offers an additional layer of security against potential misrepresentations by the franchisor.