What effect is prohibited for any statement, questionnaire, or acknowledgment signed by a Cilantro Taco Grill franchisee regarding claims under state franchise law?

According to the 2024 Cilantro Taco Grill Franchise Disclosure Document, any statement, questionnaire, or acknowledgment signed by a franchisee in connection with starting the franchise relationship cannot waive claims under state franchise law. This includes claims related to fraud in the inducement. Additionally, these documents cannot disclaim reliance on statements made by Cilantro Taco Grill, franchise sellers, or anyone acting on behalf of the franchisor. This provision takes precedence over any conflicting terms in other documents related to the franchise agreement.

In simpler terms, Cilantro Taco Grill franchisees retain their rights under state franchise laws, even after signing documents related to the franchise. This protection extends to claims of fraud, where a franchisee might argue they were misled into investing in the franchise. The clause ensures franchisees can't inadvertently give up their legal rights through standard paperwork.

This type of clause is relatively common in franchise agreements to protect franchisees, especially in states with strong franchise laws. It aims to prevent franchisors from using complex legal language to shield themselves from liability for misrepresentations or other violations of state law. Prospective franchisees should carefully review all documents and understand their rights under applicable state franchise laws before signing any agreements.