Does the Aw franchise agreement require the franchisee to acknowledge they are relying on their own investigation?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
- 20.4. You have conducted an independent investigation of the business contemplated by this Agreement.
- 20.5 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 Aw's 2025 Franchise Disclosure Document, the franchise agreement includes an acknowledgement that the franchisee has conducted their own independent investigation of the business opportunity. Specifically, the agreement states that the franchisee affirms they have conducted an independent investigation of the business contemplated by the agreement. This acknowledgement is part of a broader section that also requires the franchisee to confirm the accuracy of the information they provided to Aw during the application process.
This clause is significant because it aims to protect Aw from potential future claims by franchisees that they were misled or did not fully understand the nature of the business they were entering. By signing the agreement, the franchisee confirms they have not solely relied on information provided by Aw and have taken the initiative to assess the opportunity independently. This is a common practice in franchising, as it reinforces the franchisee's responsibility to conduct thorough due diligence.
However, the Aw franchise agreement also includes a provision that protects franchisees. It specifies that no statement, questionnaire, or acknowledgment signed by the franchisee can waive claims under applicable state franchise law, including claims of fraud in the inducement, or disclaim reliance on statements made by Aw or its representatives. This ensures that franchisees retain their legal rights even while acknowledging their independent investigation. This balance is intended to provide a fair framework for both parties in the franchise relationship.