Regarding the Checkersrallys franchise, can a franchisee's signed disclaimer be interpreted as waiving 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 the 2025 Checkersrallys Franchise Disclosure Document, a franchisee's signed disclaimer, questionnaire, clause, or statement cannot be interpreted as waiving a fraud claim. This protection applies to both common law and statutory fraud in the inducement. It also ensures that franchisees retain the right to rely on statements or information provided by Checkersrallys, its brokers, or other representatives that were material to their investment decision. This provision overrides any conflicting terms in any document related to the franchise agreement.
This clause is designed to protect franchisees from inadvertently relinquishing their rights to pursue a fraud claim if they believe they were misled into investing in the franchise. Fraud in the inducement refers to a situation where a franchisee enters into an agreement based on false or misleading information provided by the franchisor. By explicitly stating that no signed document can waive such claims, Checkersrallys aims to provide franchisees with legal recourse if they believe they were deceived.
This protection is a significant benefit for prospective Checkersrallys franchisees. It ensures that they are not bound by disclaimers that could prevent them from seeking legal remedies if they discover they were induced into the franchise agreement through fraudulent means. This provision promotes transparency and fairness in the franchise relationship, giving franchisees greater confidence in their investment. Franchisees should still carefully review all documents and seek legal advice to fully understand their rights and obligations, but this clause provides an additional layer of security against potential misrepresentation.