Does the Craters & Freighters agreement include a provision regarding 'No Waiver or Disclaimer of Reliance' in certain registration states?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
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 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, the franchise agreement includes provisions that address the waiver of claims and disclaimers of reliance in connection with the commencement of the franchise relationship for franchisees in California, Virginia, Washington, Minnesota, Illinois and Maryland. Specifically, the agreement states that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Craters & Freighters or its representatives. This provision supersedes any other conflicting terms in the franchise documents. These stipulations are designed to protect franchisees' rights under applicable state laws.
For prospective Craters & Freighters franchisees, this means that they cannot waive their rights to bring claims against the franchisor for violations of state franchise laws, including claims of fraud. It also means that franchisees can rely on the statements and representations made by Craters & Freighters during the franchise sales process. This protection is particularly important in states with franchise-specific laws designed to safeguard franchisees.
The inclusion of these provisions reflects a commitment to compliance with state franchise regulations and aims to provide a level of assurance to franchisees that their legal rights are protected. However, the specific protections and regulations vary by state, so franchisees should carefully review the addenda applicable to their state of residence or operation.
It is important for prospective franchisees to consult with an attorney to fully understand their rights and obligations under the franchise agreement and applicable state laws. This will help ensure that they are making an informed decision and are aware of the protections available to them.