Does the Cilantro Taco Grill Franchisee Acknowledgment have any impact on my rights under the Franchise Agreement?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee 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 any franchisor, franchise seller, or other person acting on behalf of the franchisor.
This provision supersedes any other term of any document executed in connection with the franchise.
CTG Franchise LLC Ву: Ву: Name: Cuahutémoc Morfin Title: Owner PRINCIPAL:
EXHIBIT H FRANCHISEE ACKNOWLEDGEMENT STATEMENT
As you know, CTG Franchise LLC (the "Franchisor") and you are preparing to enter into a franchise agreement (the "Franchise Agreement") for the establishment and operation of a Cilantro Taco Grill franchised business (the "Franchised Business"). The purpose of this Questionnaire is to determine whether any statements or promises were made to you by employees or authorized representatives of the Franchisor, or by employees or authorized representatives of Fransmart, LLC ("Fransmart") that have not been authorized, or that were not disclosed in the Disclosure Document or that may be untrue, inaccurate or misleading. The Franchisor, through the use of this document, desires to ascertain (a) that the undersigned, individually and as a representative of any legal entity established to acquire the franchise rights, fully understands and comprehends that the purchase of a franchise is a business decision, complete with its associated risks, and (b) that you are not relying upon any oral statement, representations, promises or assurances during the negotiations for the purchase of the franchise which have not been authorized by Franchisor.
Source: Item 22 — CONTRACTS (FDD pages 51–52)
What This Means (2024 FDD)
According to the 2024 Cilantro Taco Grill Franchise Disclosure Document, the Franchisee Acknowledgment addresses the understanding that purchasing a franchise is a business decision with associated risks. It confirms that the franchisee isn't relying on unauthorized oral statements made during negotiations.
The Franchisee Acknowledgment aims to verify that the franchisee understands the business risks and isn't basing their decision on unauthorized promises. This document seeks to ensure that franchisees are making informed decisions based on the information provided in the Disclosure Document and authorized communications from Cilantro Taco Grill.
However, the FDD also states that no acknowledgment signed by a franchisee can waive claims under state franchise law, including fraud, or disclaim reliance on statements made by the franchisor. This provision supersedes any other conflicting terms in any document related to the franchise agreement. Therefore, while the Franchisee Acknowledgment confirms understanding and reliance on authorized information, it cannot override the franchisee's rights under applicable state franchise laws or disclaim reliance on franchisor statements.