Can a statement, questionnaire, or acknowledgement signed by a Caring Transitions franchisee waive claims under state franchise law or disclaim reliance on statements made by the franchisor?

According to Caring Transitions's 2025 Franchise Disclosure Document, several state-specific addenda clarify that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under applicable state franchise law. This includes claims related to fraud in the inducement or disclaiming reliance on statements made by Caring Transitions, its franchise sellers, or anyone acting on their behalf. These provisions are designed to protect franchisees' rights under state laws, ensuring they cannot inadvertently forfeit legal protections through standard documents executed during the franchise commencement. This protection is explicitly stated to supersede any conflicting terms in other franchise-related documents. These stipulations are applicable in California, Illinois, Maryland, New York, and Washington.

For a prospective Caring Transitions franchisee, this means that any attempt by the franchisor to include clauses that might seem to waive your rights under state franchise laws would be unenforceable in these states. This provides a level of security, ensuring that franchisees can pursue legal remedies if they believe they have been misled or defrauded, regardless of any statements they may have signed at the beginning of the franchise relationship. This protection extends to claims of fraud and reliance on statements made by the franchisor or its representatives.

It is important for franchisees to be aware of these protections, especially when reviewing and signing franchise agreements and related documents. While the core franchise agreement might contain standard clauses, the state-specific addenda take precedence in the listed states, reinforcing the franchisee's rights. This also means that franchisees should consult with legal counsel to fully understand their rights and obligations under both the franchise agreement and the applicable state laws. Franchisees should pay close attention to any documents they sign during the commencement of the franchise relationship, ensuring they do not inadvertently waive any rights or disclaim reliance on statements made by Caring Transitions.

In summary, the FDD emphasizes the importance of state franchise laws in protecting franchisees and ensures that franchisees in California, Illinois, Maryland, New York, and Washington cannot unintentionally waive their rights or disclaim reliance on franchisor statements through standard questionnaires or acknowledgments. This provides an added layer of security and legal recourse for franchisees in these states, promoting a fairer franchise relationship.