Does the 'No Waiver or Disclaimer of Reliance' provision apply to all 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, the 'No Waiver or Disclaimer of Reliance' provision does not apply to all franchisees. This provision is specifically applicable only to Chesters franchisees and franchises that are subject to state franchise registration/disclosure laws in certain states.
The states listed are 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 signed in connection with starting the franchise cannot waive claims under state franchise law, including claims related to fraud in the inducement. Additionally, these documents cannot disclaim reliance on statements made by Chesters, its franchise sellers, or anyone acting on Chesters's behalf.
This provision is important for prospective franchisees in the listed states because it protects their rights to pursue legal claims and rely on information provided by Chesters during the franchise sales process. It ensures that franchisees cannot inadvertently waive their legal rights through standard documents or agreements. This protection supersedes any conflicting terms in other franchise documents, reinforcing the franchisee's ability to hold Chesters accountable for their representations.