In which states does the 'No Waiver or Disclaimer of Reliance' provision apply to Cinnabon franchisees?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
The following provision applies only to franchisees and Franchised Businesses that are subject to the state franchise 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 behalf of us. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, a 'No Waiver or Disclaimer of Reliance' provision applies specifically to franchisees in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. This provision ensures that franchisees in these states cannot waive claims under state franchise law, including claims related to fraud in the inducement, or disclaim reliance on statements made by Cinnabon or its representatives. This protection is particularly important as it prevents franchisees from inadvertently giving up their legal rights through standard contract clauses.
This provision essentially strengthens the legal standing of Cinnabon franchisees in the listed states by preventing the franchise agreement from overriding state franchise laws. It means that any statement, questionnaire, or acknowledgment signed by the franchisee cannot be used to waive their rights or disclaim reliance on Cinnabon's representations. This offers an additional layer of security, ensuring that franchisees can pursue legal remedies if they believe they were misled or defrauded during the franchise sales process.
For a prospective Cinnabon franchisee, this addendum provides significant reassurance, especially in states with strong franchise laws. It confirms that the franchisee's rights under those state laws are protected and cannot be waived through contractual terms. This can be a critical factor in deciding whether to invest in a Cinnabon franchise, as it reduces the risk of being bound by unfair or misleading agreements. The provision supersedes any other conflicting terms in any document executed in connection with the franchise, further solidifying its importance.