Does the Chem Dry Franchise Agreement require a franchisee to waive reliance on any representations made in the Franchise Disclosure Document delivered before the effective date?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
FRANCHISEE acknowledges that FRANCHISEE has read this Agreement and CDI's Franchise Disclosure Document and that FRANCHISEE understands and accepts the terms, conditions and covenants contained in this Agreement as being reasonably necessary to maintain CDI's high standards of quality and service, as well as the uniformity of those standards at each CHEM-DRY Business and to protect and preserve the goodwill of the Marks.
FRANCHISEE acknowledges that CDI has the right to restrict FRANCHISEE'S sources of goods and services, as provided in various sections in this Agreement.
FRANCHISEE acknowledges that FRANCHISEE has conducted an independent investigation of the business contemplated by this Agreement and recognizes that it involves business risks and that the success of the venture is largely dependent upon the business abilities of FRANCHISEE.
FRANCHISEE acknowledges and agrees that CDI's officers, directors, employees and agents act only in a representative and not in a personal capacity in their dealings with FRANCHISEE.
FRANCHISEE further acknowledges that FRANCHISEE has not received or relied upon, any warranty or guaranty, express or implied, as to the potential revenues, profits or success of the franchise or policies made by CDI or its officers, directors, employees or agents that are contrary to the statements, if any, expressly made in CDI's Franchise Disclosure Document.
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, the Franchisee acknowledges that they have read the Franchise Disclosure Document (FDD) and understands the terms, conditions, and covenants within the agreement. The franchisee also acknowledges that they have conducted an independent investigation of the business and recognizes the business risks involved, understanding that success depends largely on their own business abilities.
The Chem Dry Franchise Agreement stipulates that the franchisee has not relied upon any warranty or guaranty, express or implied, regarding potential revenues, profits, or success of the franchise, except for statements expressly made in the FDD. This means that any verbal promises or representations made by Chem Dry or its representatives outside of what is written in the FDD are not binding.
This acknowledgement serves to protect Chem Dry from claims based on representations not contained within the FDD. It reinforces the importance of the FDD as the primary source of information for prospective franchisees and emphasizes the need for franchisees to conduct their own due diligence and seek professional advice. Franchisees should carefully review the FDD and any related agreements with an attorney or advisor to fully understand their rights and obligations.