For Carls franchisees in California, what is the specific effect of the franchisee signing a statement, questionnaire, or acknowledgment?
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, if you are a franchisee in California, any statement, questionnaire, or acknowledgment that you sign in connection with starting your franchise will not waive your rights to make claims under California franchise law. This includes claims of fraud related to inducing you to invest in the franchise.
Additionally, these documents cannot be used to disclaim reliance on statements made by Carls, its franchise sellers, or anyone acting on Carls's behalf. This means that even if you sign something that seems to say you didn't rely on information from Carls, you can still argue that you did rely on that information if it becomes relevant to a legal claim.
This protection for franchisees in California supersedes any other conflicting terms in any document you sign related to the franchise agreement. This ensures that franchisees retain their rights under California law, regardless of what other agreements might state.