For Carls franchisees in California, what is the specific effect of the franchisee agreeing to a statement?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
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 Carls's 2024 Franchise Disclosure Document, any statement, questionnaire, or acknowledgment signed by a franchisee in California related to the start of the franchise relationship cannot waive claims under California franchise law. This includes claims related to fraud.
Specifically, the agreement cannot disclaim reliance on statements made by Carls, franchise sellers, or anyone acting on Carls's behalf. This protects franchisees from unintentionally giving up their legal rights or claims due to signing certain documents during the initial phase of the franchise.
This provision overrides any conflicting terms in any document associated with the franchise agreement, ensuring that the franchisee's rights under California franchise law are preserved. This is particularly important for prospective franchisees as it prevents Carls from using standardized agreements to circumvent state laws designed to protect franchisees.