Does the C12 Group franchise agreement allow franchisees to disclaim reliance on statements made by franchise sellers acting on behalf of the franchisor?

According to the 2025 C12 Group Franchise Disclosure Document, the franchise agreement does not allow franchisees to disclaim reliance on statements made by the franchisor, franchise seller, or other persons acting on behalf of the franchisor. This means that any statement, questionnaire, or acknowledgment signed by the franchisee cannot waive their right to rely on statements made by those representing C12 Group. This protection extends to claims under applicable state franchise laws, including fraud in the inducement.

This provision is designed to protect franchisees from potentially misleading or false statements made during the franchise sales process. It ensures that franchisees can hold C12 Group accountable for the representations made to them, which is particularly important when assessing the potential risks and rewards of investing in a franchise. This clause overrides any other conflicting terms in any document executed in connection with the franchise agreement, reinforcing its importance.

Several states, including Illinois, Maryland, and others via implication, require similar protections for franchisees. This reflects a broader trend in franchise law aimed at safeguarding franchisees' interests and ensuring transparency in the franchise sales process. Prospective C12 Group franchisees should carefully review this provision and understand their rights regarding reliance on statements made by the franchisor and its representatives.