factual

Does the C12 Group FDD provision regarding questionnaires supersede other terms in documents executed in connection with the franchise?

C12_Group 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 23 — RECEIPTS (FDD pages 46–137)

What This Means (2025 FDD)

According to the 2025 C12 Group Franchise Disclosure Document, any statement, questionnaire, or acknowledgment signed by a franchisee related to the start of the franchise relationship has specific protections. These protections ensure that the franchisee does not waive rights under state franchise law, including claims of fraud, or disclaim reliance on statements made by C12 Group or its representatives.

Specifically, the FDD states that this provision regarding questionnaires supersedes any other term in any document executed in connection with the franchise. This means that if there's a conflict between what's in a questionnaire or acknowledgment and another part of the franchise agreement or related documents, the questionnaire provision will take precedence. This is designed to protect franchisees from inadvertently giving up important legal rights or claims.

Several states, including Illinois, Maryland, and California, have specific requirements or amendments related to this clause, reinforcing the importance of understanding these protections. For example, California law sets a maximum interest rate of 10% on late fees, and the franchise agreement's provision for termination upon bankruptcy may not be enforceable under federal bankruptcy law. These state-specific disclosures highlight the need for prospective franchisees to carefully review the FDD and any related agreements with legal counsel to ensure full comprehension of their rights and obligations.

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.