Can an Aw franchisee disclaim reliance on statements made by the franchisor via signed acknowledgments?

According to Aw's 2025 Franchise Disclosure Document, a franchisee cannot disclaim reliance on statements made by the franchisor, franchise seller, or anyone acting on behalf of the franchisor through signed acknowledgments or questionnaires. This protection extends to claims under applicable state franchise laws, including fraud in the inducement. This means that any attempt to waive these rights through signed documents is superseded by this provision in the franchise agreement. This clause is designed to protect franchisees from unknowingly relinquishing their legal rights based on statements made during the franchise sales process.

This provision ensures that Aw franchisees retain the ability to pursue legal claims based on misrepresentations or fraudulent statements made by Aw or its representatives, regardless of any acknowledgments signed during the commencement of the franchise relationship. This is a significant protection for franchisees, as it prevents Aw from using standardized acknowledgments to shield itself from liability for potentially misleading statements. The clause explicitly states that it supersedes any other conflicting terms in any document executed in connection with the franchise, reinforcing its importance.

For prospective Aw franchisees, this means that they should still conduct thorough due diligence and seek legal advice, but they can be assured that they are not waiving their rights to hold Aw accountable for its representations. This protection is particularly important in states with strong franchise laws, as it ensures that franchisees can benefit from those protections. However, for franchisees in Illinois, any condition that requires a franchisee to waive compliance with the Illinois Franchise Disclosure Act or any other law in Illinois is void. This addendum reinforces the protections already in place, specifically referencing Illinois franchise law.