Can an Aw franchisee disclaim reliance on statements made by the franchisor or its representatives in any document related to the franchise?
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, a franchisee cannot disclaim reliance on statements made by Aw or its representatives. The franchise agreement states that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law, including fraud, or disclaim reliance on statements made by Aw or its representatives. This provision overrides any other conflicting terms in any document related to the franchise agreement. This protection ensures that franchisees are not bound by clauses that might prevent them from pursuing legal recourse based on misrepresentations.
This protection is particularly important for prospective franchisees as it ensures they can hold Aw accountable for the accuracy of information provided during the franchise sales process. This includes statements made in the FDD, during presentations, or in other communications. The clause aims to prevent Aw from using waivers or disclaimers to shield themselves from liability for misleading or fraudulent statements.
However, it's important to note that the Illinois Franchise Disclosure Act provides additional protections. For franchisees in Illinois, any provision that attempts to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void. This includes stipulations within the Franchise Agreement or Franchisee Disclosure Questionnaire. This ensures that Illinois franchisees retain their full legal rights and protections under state law, regardless of any conflicting terms in the franchise agreement.