For C12 Group franchises in Washington, can a franchisee waive claims of fraud in the inducement?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
e Registration and Disclosure Law.
Any claim arising under the Maryland Franchise Registration and Disclosure Law must be brought within three (3) years after the grant of the franchise.
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 C12 Group, LLC Print Name: Print Name: Its: Its:
MINNESOTA ADDENDUM TO THE FRANCHISE AGREEMENT
Minn. Stat. §80C.21 and Minn. Rule 2860.4400J prohibit C12 from requiring litigation to be conducted outside Minnesota. In addition, nothing in the Franchise Disclosure Document or agreement can abrogate or reduce any of Your rights as provided for in Minnesota Statutes, Chapter 80C, or Your rights to any procedure, forum, or remedies provided for by the laws or the jurisdiction.
With respect to franchises governed by Minnesota law, C12 will comply with Minn. Stat. Sec. 80C.14, Subds. 3, 4 and 5 which require, except in certain specified cases, that a franchisee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice for non-renewal of the franchise agreement. Minn. Rule Part 2860.4400J prohibits a franchisee from waiving his rights to a jury trial or waiving his rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction, or consenting to liquidated damages, termination penalties or judgment notes.
Source: Item 23 — RECEIPTS (FDD pages 46–137)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, a franchisee in Washington cannot waive claims of fraud in the inducement at the commencement of the franchise relationship. The FDD states that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under any applicable state franchise law, including fraud in the inducement. This protection is in place to ensure franchisees are not unknowingly giving up their rights when entering into the franchise agreement. This provision overrides any other conflicting terms in any document related to the franchise.
Furthermore, the FDD specifies that a release or waiver of rights executed by a C12 Group franchisee cannot include rights under the Washington Franchise Investment Protection Act or any rule or order connected to it. The only exception is if the waiver is part of a negotiated settlement reached after the franchise agreement is already in effect, and both parties are represented by independent legal counsel. This ensures that any waivers are made knowingly and voluntarily with proper legal guidance.
In practical terms, this means that a prospective C12 Group franchisee in Washington retains the right to pursue legal action for fraud in the inducement, despite any initial agreements suggesting otherwise. However, it is important to note that this protection primarily applies at the start of the franchise relationship. After the franchise agreement is in effect, there are limited circumstances where a franchisee can waive these rights, specifically through a negotiated settlement with independent counsel. This highlights the importance of seeking legal advice before signing any documents that could potentially waive legal rights.