Can a Cinnaholic franchisee disclaim reliance on statements made by the franchisor through a signed statement or questionnaire?

According to Cinnaholic's 2025 Franchise Disclosure Document, a franchisee cannot disclaim reliance on statements made by the franchisor, franchise seller, or anyone acting on behalf of the franchisor through a signed statement, questionnaire, or acknowledgment. This protection extends to claims under applicable state franchise law, including fraud in the inducement. This means that any such waiver is ineffective, and the franchisee retains the right to pursue claims based on misrepresentations or unauthorized statements made during the franchise sales process. This provision supersedes any other conflicting terms in any document executed in connection with the franchise agreement.

This protection is further reinforced by specific addenda for franchisees in Illinois, Virginia, and Washington. These addenda explicitly state that no statement, questionnaire, or acknowledgment can waive claims or disclaim reliance on statements made by the franchisor or its representatives. These addenda modify and supersede the standard franchise agreement to ensure compliance with state laws.

Cinnaholic also uses a Franchisee Disclosure Questionnaire to determine if any unauthorized or untrue statements were made to the prospective franchisee. While the franchisee must sign and date the questionnaire the same day they sign the Development Agreement and/or Franchise Agreement and pay their development and/or franchise fee, they cannot sign or date this questionnaire the same day as the Receipt for the Franchise Disclosure Document. This questionnaire aims to ensure that the franchisee has been properly represented and understands the limitations on claims related to the franchise. However, completing this questionnaire does not negate the franchisee's right to rely on statements made by Cinnaholic.