Can a disclaimer signed by a Checkersrallys franchisee waive a claim of fraud in the inducement?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
No disclaimer, questionnaire, clause, or statement signed by a franchisee in connection with the commencement of the franchise relationship shall be construed or interpreted as waiving any claim of fraud in the inducement, whether common law or statutory, or as disclaiming reliance on or the right to rely upon any statement made or information provided by any franchisor, broker or other person acting on behalf of the franchisor that was a material inducement to a franchisee's investment.
This provision supersedes any other or inconsistent term of any document executed in connection with the franchise.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, a franchisee cannot waive a claim of fraud in the inducement. The FDD states that no disclaimer, questionnaire, clause, or statement signed by a franchisee in connection with the commencement of the franchise relationship can be interpreted as waiving any claim of fraud in the inducement. This applies to both common law and statutory claims.
This provision also ensures that franchisees cannot disclaim reliance on statements or information provided by Checkersrallys, its brokers, or other representatives if that information was a material inducement to the franchisee's investment. This means that if a franchisee was persuaded to invest based on specific information provided by Checkersrallys, they retain the right to claim fraud if that information proves to be false or misleading, even if they signed a disclaimer.
Furthermore, the FDD emphasizes that this provision overrides any other conflicting terms in any document related to the franchise agreement. This is particularly important for prospective franchisees as it provides a safeguard against inadvertently waiving their rights through other clauses or agreements signed during the franchise commencement process. This protection helps ensure that Checkersrallys franchisees retain their legal recourse in cases of fraudulent inducement, reinforcing the importance of accurate and truthful information during the franchise sales process.