Can a Cinnaholic franchisee's signed statement or questionnaire waive claims under state franchise law, including fraud in the inducement?

According to Cinnaholic's 2025 Franchise Disclosure Document, a franchisee's signed statement, questionnaire, or acknowledgment cannot waive claims under state franchise law, including fraud in the inducement. This protection is highlighted in addenda required by several states. Specifically, the FDD states that no such document signed in connection with the commencement of the franchise relationship can waive these claims or disclaim reliance on statements made by the franchisor or its representatives. This provision overrides any other conflicting terms in any document related to the franchise agreement.

This means that Cinnaholic franchisees retain their rights under applicable state franchise laws, even if they sign documents that appear to waive those rights. This is particularly important in cases of alleged fraud, where a franchisee might claim they were induced to enter the agreement based on false or misleading information provided by the franchisor. The FDD emphasizes that franchisees cannot disclaim reliance on statements made by the franchisor, ensuring they can pursue legal remedies if necessary.

Several states, including California, New York, South Carolina, Virginia, and Washington, have specific addenda reinforcing these protections. For example, California's Franchise Investment Law explicitly states that any provision requiring a franchisee to waive specific provisions of the law is void and unenforceable. Similarly, Washington state law ensures that the Washington Franchise Investment Protection Act prevails in case of conflicting laws. These state-specific addenda underscore the importance of franchisees understanding their rights and protections under the laws of their respective states.

For prospective Cinnaholic franchisees, this information offers significant reassurance. It confirms that they cannot inadvertently waive their legal rights through standard documents or questionnaires. It also highlights the importance of consulting with legal counsel to fully understand their rights and the specific protections afforded by their state's franchise laws. This ensures that franchisees are equipped to make informed decisions and protect their interests throughout the franchise relationship.