Can a Chesters franchisee disclaim reliance on statements made by the franchisor by signing an acknowledgment?

According to Chesters's 2025 Franchise Disclosure Document, in certain states, a franchisee cannot waive claims under state franchise law or disclaim reliance on statements made by Chesters or its representatives by signing an acknowledgment. This protection applies to 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.

This means that if a Chesters franchisee is located in one of the listed states, any signed statement, questionnaire, or acknowledgment cannot be used to waive their right to make claims under applicable state franchise law, including claims related to fraud in the inducement. Furthermore, these documents cannot disclaim reliance on statements made by Chesters or anyone acting on its behalf. This provision takes precedence over any conflicting terms in any document related to the franchise agreement.

For prospective Chesters franchisees in these states, this provides an added layer of protection. It ensures that they cannot inadvertently give up their legal rights or claims based on statements made during the franchise sales process, even if they sign a document that appears to do so. This helps to protect franchisees from potentially misleading or fraudulent information provided by the franchisor.

For franchisees outside of these specific states, the FDD indicates that the franchisee cannot waive claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on any statement made by Chesters, any franchise seller, or any other person acting on Chesters's behalf. This provision supersedes any other term of any document executed in connection with the franchise.