Does the South Carolina addendum for Cinnaholic franchise agreements allow franchisees to disclaim reliance on statements made by the franchisor or their representatives?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 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.
ADDENDUM REQUIRED BY THE STATE OF SOUTH CAROLINA
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 27–35)
What This Means (2025 FDD)
According to the 2025 Cinnaholic Franchise Disclosure Document, the South Carolina addendum ensures that franchisees cannot waive claims under state franchise law or disclaim reliance on statements made by Cinnaholic or its representatives. This means that any statement, questionnaire, or acknowledgment signed by the franchisee cannot be used to prevent them from pursuing claims of fraud or misrepresentation against Cinnaholic. This provision is designed to protect franchisees by ensuring they can hold Cinnaholic accountable for the information provided during the franchise sales process.
This protection is significant for prospective Cinnaholic franchisees in South Carolina because it prevents Cinnaholic from using contractual clauses to shield themselves from liability for inaccurate or misleading statements. It reinforces the franchisee's right to rely on the information provided by Cinnaholic when making their investment decision. This addendum essentially overrides any conflicting terms in the franchise agreement, providing a stronger legal standing for the franchisee.
Many states have specific franchise laws in place to protect franchisees, and addendums like this one for South Carolina are common. They aim to balance the power dynamic between the franchisor and franchisee, ensuring a fairer business relationship. Franchisees should always carefully review any state-specific addendums to understand their rights and protections under local laws. Consulting with an attorney is advisable to fully understand the implications of these provisions.