Does the Washington addendum to the Cilantro Taco Grill FDD affect the termination rights of the franchisee?
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.
Source: Item 23 — RECEIPT (FDD pages 52–208)
What This Means (2024 FDD)
According to the 2024 Cilantro Taco Grill Franchise Disclosure Document, the Washington addendum does address franchisee rights related to the franchise agreement. Specifically, it states that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor or its representatives. This provision supersedes any other conflicting terms in any document related to the franchise.
For a prospective Cilantro Taco Grill franchisee in Washington, this addendum provides additional protection. It ensures that franchisees cannot unknowingly or unintentionally waive their rights under Washington's franchise laws. This is particularly important in cases of alleged fraud or misrepresentation by the franchisor during the franchise sales process.
This type of addendum is common in franchise agreements for states with specific franchise laws designed to protect franchisees. It aims to prevent franchisors from using standard contract language to circumvent these state laws. Franchisees should carefully review the entire franchise agreement and any state-specific addenda with legal counsel to fully understand their rights and obligations.
In practical terms, this means that if a Cilantro Taco Grill franchisee in Washington believes they were misled or defrauded during the franchise sales process, they can pursue legal claims without being barred by waivers or disclaimers in the franchise agreement. This addendum strengthens the franchisee's position and provides an additional layer of legal protection under Washington state law.