For Carls franchisees in Applicable Franchise Registration States, what is the specific effect of the rider on any other term of any document?
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, a rider is added to the FDD for franchisees residing in or planning to operate a Carl's Jr. restaurant in an Applicable Franchise Registration State. These states include California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin.
The rider specifies that no statement, questionnaire, or acknowledgment signed by a franchisee at the start of their franchise relationship can waive claims under applicable state franchise law, including claims of fraud. Additionally, franchisees cannot disclaim reliance on statements made by Carls, its franchise sellers, or anyone acting on Carls' behalf.
This rider provision supersedes any conflicting terms in any document related to the franchise agreement. This means that the protections afforded to franchisees under state franchise laws and their ability to rely on statements made by Carls cannot be undermined by any other agreement or document they sign.