What is the effect of signing the receipt for the Bombs Away FDD?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
Away Franchising reasonably requests to effectuate the purposes of this Release. This Release contains the entire agreement of the parties concerning the subject matter hereof. This Release shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
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Item 23 RECEIPTS
Detachable documents acknowledging your receipt of this disclosure document are attached as the last two pages of this disclosure document.
EXHIBIT A
STATE ADDENDA TO DISCLOSURE DOCUMENT
CALIFORNIA ADDENDUM TO DISCLOSURE DOCUMENT
California limited liability companies Code, Section 31125 requires the franchisor to give the franchisee a disclosure document, approved by the Department of Financial Protection and Innovation, 14-days prior to the execution of an agreement or the solicitation of a proposed material modification of an existing agreement.
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.
THE CALIFORNIA FRANCHISE INVESTMENT LAW REQUIRES THAT A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE BE DELIVERED TOGETHER WITH THE OFFERING CIRCULAR.
Source: Item 23 — RECEIPTS (FDD pages 36–117)
What This Means (2024 FDD)
According to the 2024 Bombs Away FDD, detachable documents acknowledging receipt of the disclosure document are included as the last two pages of the document. The receipt serves as confirmation that the franchisee received the FDD. Bombs Away Franchising, LLC must provide the disclosure document to a prospective franchisee 14 calendar days before they sign a binding agreement or make a payment. New York requires the disclosure document at the earlier of the first personal meeting or 10 business days before signing any agreement or payment.
Signing the receipt does not waive any rights the franchisee has under franchise law, including claims of fraud or disclaiming reliance on statements made by Bombs Away or its representatives. In California, no statement signed by a franchisee can waive claims under state franchise law or disclaim reliance on statements made by the franchisor. This protection supersedes any other term in any document related to the franchise.
If Bombs Away does not deliver the FDD on time, or if it contains false, misleading, or omits material information, it may be a violation of federal and state law. This should be reported to the Federal Trade Commission and any applicable state agency. The FDD also states that one copy of the receipt should be returned to Bombs Away Franchising, LLC at their Campbell, CA address, while the franchisee should keep another copy for their records.