factual

Can an Aw franchisee waive claims under state franchise law via signed acknowledgments?

Aw Franchise · 2025 FDD

Answer 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 waive claims under state franchise law through signed acknowledgments. Specifically, any statement, questionnaire, or acknowledgment signed by a franchisee in connection with starting the franchise relationship will not waive claims under any applicable state franchise law. This includes claims related to fraud in the inducement. Furthermore, franchisees cannot disclaim reliance on statements made by Aw, its sellers, or anyone acting on Aw's behalf. This provision overrides any other conflicting terms in any document related to the franchise agreement.

This protection ensures that franchisees retain their legal rights under state franchise laws, regardless of any acknowledgments they may sign. It prevents Aw from using acknowledgments to shield itself from liability for misrepresentations or other violations of franchise law. This is a significant benefit for franchisees, as it strengthens their position in the event of a dispute with Aw.

This type of clause is not uncommon in franchise agreements, as many states have franchise laws designed to protect franchisees. These laws often include provisions that invalidate waivers of certain rights. Prospective Aw franchisees should be aware of this protection and consult with an attorney to fully understand their rights under applicable state franchise laws.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.