For Carls franchisees in Applicable Franchise Registration States, what does the rider supersede?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
The following language is hereby added to the Franchise Disclosure Document if you are a resident of one of the states listed in the heading of this Rider (the "Applicable Franchise Registration State") or a non-resident who is acquiring franchise rights permitting the location of one or more Carl's Jr. Restaurants in the Applicable Franchise Registration State:
"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 80–480)
What This Means (2024 FDD)
According to the 2024 Carls Franchise Disclosure Document, for franchisees residing in or planning to operate a Carl's Jr. restaurant in an Applicable Franchise Registration State (California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin), a specific rider is added to the Franchise Disclosure Document. This rider addresses the enforceability of statements, questionnaires, or acknowledgments signed by the franchisee at the start of their franchise relationship.
The rider explicitly states that no such document can waive claims under state franchise law, including claims of fraud, or disclaim reliance on statements made by Carls or its representatives. This means that even if a franchisee signs a document that appears to limit their rights, the rider ensures they can still pursue legal claims related to franchise law violations or misrepresentations.
In essence, this provision protects Carls franchisees by preventing them from inadvertently giving up their legal rights through standard paperwork. It supersedes any conflicting terms in any document executed in connection with the franchise, providing an additional layer of protection for franchisees in the specified states.