What is Checkersrallys prohibited from disclaiming or denying under California's Franchise Investment Law?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
California's Franchise Investment Law (Corporations Code sections 31512 and 31512.1) states that any provision of a franchise agreement or related document requiring the franchisee to waive specific provisions of the law is contrary to public policy and is void and unenforceable.
The law also prohibits a franchisor from disclaiming or denying (i) representations it, its employees, or its agents make to you, (ii) your ability to rely on any representations it makes to you, or (iii) any violations of the law.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, California's Franchise Investment Law prohibits Checkersrallys from disclaiming or denying certain things. Specifically, Checkersrallys cannot disclaim or deny representations made by the company, its employees, or its agents to the franchisee.
Furthermore, Checkersrallys is prohibited from denying a franchisee's ability to rely on any representations made by Checkersrallys. This means that Checkersrallys cannot claim that a franchisee was unreasonable in relying on information provided by the company when making their investment decision.
Finally, Checkersrallys is not allowed to disclaim or deny any violations of the law. This ensures that Checkersrallys remains accountable for its actions and cannot avoid liability by claiming ignorance or lack of responsibility for legal breaches. These protections are in place to safeguard franchisees' rights and ensure fair practices within the franchise system in California.