Does the provision regarding waivers and disclaimers in connection with the Caring Transitions franchise supersede other terms in documents executed in connection with the franchise?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
No statement, questionnaire, or acknowledgement signed or agreed to by you 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 us, any franchise seller, or any other person acting on our behalf. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, certain provisions regarding waivers and disclaimers do indeed supersede other terms in documents executed in connection with the franchise, particularly concerning claims under state franchise law and reliance on franchisor statements. This means that any statement, questionnaire, or acknowledgment signed by a franchisee cannot waive claims like fraud in the inducement or disclaim reliance on statements made by Caring Transitions or its representatives.
This protection is significant for prospective Caring Transitions franchisees because it ensures that they cannot inadvertently waive their rights under state franchise laws through standard paperwork. For example, if a franchisee signs a document that seems to disclaim reliance on statements made by Caring Transitions during the sales process, this provision ensures that the disclaimer is unenforceable, preserving the franchisee's ability to bring a claim based on those statements.
The FDD highlights this protection in two specific instances. First, it states that no statement signed by a franchisee can waive claims under state franchise law or disclaim reliance on statements made by the franchisor. Second, it explicitly notes that this provision supersedes any other term in any document executed in connection with the franchise. This reinforces the importance of these protections and clarifies that they take precedence over any conflicting terms in other agreements.
For franchisees in New York and California, there are specific addenda to the franchise agreement that provide additional protections and clarifications under those states' laws. These addenda further emphasize the importance of adhering to state-specific regulations and ensuring that franchisees' rights are protected, regardless of any conflicting terms in the standard franchise agreement.