What exhibit number are the State Specific Addenda for Cost Cutters Family Hair Salon?
Cost_Cutters_Family_Hair_Salon Franchise · 2024 FDDAnswer from 2024 FDD Document
FRANCHISE DISCLOSURE DOCUMENT
EXHIBIT I: STATE ADDENDA
NORTH AMERICAN SECURITIES ADMINISTRATORS ASSOCIATION, INC. ("NASAA") ADDENDA TO COST CUTTERS® FRANCHISE DISCLOSURE DOCUMENT
This Addendum pertains to franchises sold in the United States and is for the purpose of complying with federal and state statutes and regulations. Notwithstanding anything which may be contained in the body of the Franchise Disclosure Document the following shall apply:
- 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 22 — CONTRACTS (FDD page 76)
What This Means (2024 FDD)
According to the 2024 Cost Cutters Family Hair Salon Franchise Disclosure Document, the State Addenda can be found in Exhibit I. These addenda are designed to ensure compliance with both federal and state regulations concerning franchises sold within the United States.
Specifically, the North American Securities Administrators Association, Inc. (NASAA) addenda included in Exhibit I, clarifies the franchisee's rights, particularly regarding waivers and disclaimers. It explicitly states that no agreement signed by a franchisee can waive claims under state franchise law, including those related to fraud, or disclaim reliance on statements made by the franchisor or its representatives. This provision takes precedence over any conflicting terms in other documents executed during the franchise agreement.
For a prospective Cost Cutters Family Hair Salon franchisee, this means that certain legal protections are in place regardless of what other documents might imply. The franchisee retains the right to pursue claims of fraud and rely on the franchisor's statements, which is a crucial safeguard during the franchise relationship.