Does the Chesters FDD supersede any other term of any document executed in connection with the franchise regarding waivers or disclaimers?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
The following provision applies only to franchisees and franchises that are subject to the state franchise registration/disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin:
No statement, questionnaire, or acknowledgement signed or agreed to by you 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 us, any franchise seller, or any other person acting on our behalf. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to the 2025 Chesters FDD, in certain states, a specific provision addresses waivers and disclaimers. For franchisees subject to franchise registration/disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin, any statement or acknowledgement signed in connection with the franchise commencement cannot waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Chesters or its representatives.
This provision explicitly supersedes any other term of any document executed in connection with the Chesters franchise. This means that if any other agreement or document related to the franchise contains terms that conflict with this provision regarding waivers or disclaimers, this specific clause will take precedence in those listed states.
For prospective Chesters franchisees in these states, this offers additional protection by ensuring that they cannot unknowingly waive their rights under state franchise laws or disclaim reliance on statements made by Chesters. Franchisees in Washington should also note that a release or waiver of rights in the franchise agreement is void, except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel, in accordance with RCW 19.100.220(2).