In which states does the 'No Waiver or Disclaimer of Reliance' provision apply to Chesters franchisees?
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 Chesters's 2025 Franchise Disclosure Document, a 'No Waiver or Disclaimer of Reliance' provision applies specifically to franchisees in certain states with franchise registration/disclosure laws. This provision ensures that franchisees in these states retain their rights under state franchise laws, preventing them from unintentionally waiving claims or disclaiming reliance on statements made by Chesters during the franchise commencement.
Specifically, this provision applies to Chesters franchisees located in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin. For franchisees in these states, any statement, questionnaire, or acknowledgment they sign cannot waive claims under state franchise law, including claims related to fraud in the inducement. Additionally, franchisees in these states cannot disclaim reliance on statements made by Chesters, its franchise sellers, or anyone acting on Chesters's behalf.
This provision is designed to protect franchisees by ensuring they can pursue legal remedies if they believe they were misled or defrauded during the franchise sales process. It supersedes any conflicting terms in any document executed in connection with the franchise agreement, reinforcing the franchisee's rights under applicable state laws. Prospective Chesters franchisees in these states should be aware of this protection, as it can be crucial in resolving disputes or addressing potential misrepresentations made during the franchise acquisition.