Does the Washington addendum affect the relationship between the Cilantro Taco Grill franchisor and franchisee?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise. There may also be court decisions which may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise.
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- Each provision of this Amendment shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the Washington Franchise Investment Law are met independently without reference to this Amendment.
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- 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.
Source: Item 23 — RECEIPT (FDD pages 52–208)
What This Means (2024 FDD)
According to the 2024 Cilantro Taco Grill FDD, the Washington addendum does impact the relationship between the franchisor and franchisee. Specifically, the addendum ensures that no agreement signed by the franchisee waives claims under Washington franchise law, including fraud, or disclaims reliance on franchisor statements. This provision overrides any conflicting terms in other franchise documents.
This means that Cilantro Taco Grill franchisees in Washington retain their rights under state franchise law, regardless of any waivers or disclaimers they might sign. This protection is particularly important in cases of alleged misrepresentation or fraud during the franchise sales process. The addendum strengthens the franchisee's position by preventing Cilantro Taco Grill from enforcing clauses that could limit their legal recourse.
Furthermore, the FDD states that a "Request for Financial Information cannot be utilized by a resident of the State of Washington." This suggests that Washington franchisees may not be able to rely on financial information provided by Cilantro Taco Grill in the same way as franchisees in other states. Prospective franchisees in Washington should be aware of these specific protections and limitations and consult with a legal professional to fully understand their rights and obligations.