Can a Craters & Freighters franchisee disclaim reliance on statements made by the franchisor or their representatives in connection with the franchise relationship?
Craters_Freighters 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.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, in certain states, a franchisee cannot disclaim reliance on statements made by Craters & Freighters or its representatives. This means that franchisees in these states retain the right to bring claims based on statements made during the franchise sales process, even if they sign agreements that seem to waive such claims. This protection is particularly relevant to claims of fraud in the inducement, where a franchisee alleges they were misled into entering the franchise agreement.
Specifically, the FDD states that for franchisees in California, Illinois, Maryland, Minnesota, Virginia and Washington, no signed statement, questionnaire, or acknowledgment can waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Craters & Freighters or its representatives. This provision takes precedence over any other conflicting terms in any document related to the franchise agreement.
This protection is designed to ensure that Craters & Freighters franchisees are not unfairly bound by waivers that could prevent them from seeking legal recourse if they believe they were misled. Prospective franchisees should be aware of this protection and consult with an attorney to understand their rights under state franchise laws. It is important to note that laws can change and vary by jurisdiction, so consulting with a legal professional is crucial.