Can a Chatime franchisee disclaim reliance on statements made by the franchisor or their representatives?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
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- No statement, questionnaire, or acknowledgement 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 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, specifically within several state-specific amendments, a franchisee cannot disclaim reliance on statements made by Chatime or its representatives. This protection is highlighted in amendments for California, Illinois, New York, and Washington.
The FDD states that no statement, questionnaire, or acknowledgement signed by a franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor or its representatives. This clause supersedes any other conflicting terms in any document related to the franchise agreement.
This provision is beneficial for prospective Chatime franchisees as it ensures they retain their legal rights to pursue claims based on misrepresentations or fraudulent statements made by the franchisor during the franchise sales process. It prevents Chatime from using waivers or disclaimers to shield themselves from liability for inaccurate or misleading information provided to franchisees. This protection is particularly important in states with franchise-specific laws like California, Illinois, New York and Washington, reinforcing the franchisee's ability to make informed decisions based on the information provided by Chatime.