Does the Aw franchise agreement supersede other documents regarding waivers of state franchise law claims?
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 Aw's 2025 Franchise Disclosure Document, any statement, questionnaire, or acknowledgment signed by a franchisee regarding the commencement of the franchise relationship cannot waive claims under state franchise law. This includes claims of fraud. Additionally, franchisees cannot disclaim reliance on statements made by Aw or anyone acting on their behalf.
This provision in the Aw franchise agreement explicitly overrides any other conflicting terms in any document executed in connection with the franchise. This means that Aw franchisees are protected from inadvertently waiving their rights under state franchise laws through other documents or agreements they might sign.
However, it's important to note that the Illinois addendum contains specific modifications and exceptions to this general rule for franchisees operating in Illinois. For example, certain provisions regarding governing law, jurisdiction, and waivers of compliance with the Illinois Franchise Disclosure Act may be void or modified as detailed in the addendum. Therefore, prospective Aw franchisees should carefully review the state addendum, if applicable, to understand how these provisions apply to them.
In summary, while the Aw franchise agreement generally supersedes other documents regarding waivers of state franchise law claims, franchisees need to be aware of potential state-specific addendums that may alter or limit this protection, especially in states like Illinois.