Are franchisees in California subject to the acknowledgements outlined in section (d) of the Craters & Freighters agreement?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 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, there are specific stipulations regarding acknowledgements signed by franchisees in California. Specifically, Item 22 of the FDD states that no statement, questionnaire, or acknowledgment signed by a franchisee in connection with starting the franchise can waive claims under California franchise law, including claims related to fraud. Furthermore, franchisees cannot disclaim reliance on statements made by Craters & Freighters or anyone acting on their behalf. This provision takes precedence over any conflicting terms in any document related to the franchise agreement.
This means that Craters & Freighters franchisees in California retain their rights under California franchise law, regardless of any acknowledgements they may sign. This protection extends to claims of fraud and reliance on statements made by the franchisor. The disclosure also highlights that if the franchise agreement contains a provision inconsistent with California law, the law will take precedence.
Prospective franchisees in California should be aware of these protections and consult with legal counsel to fully understand their rights. This ensures that franchisees are not inadvertently waiving their legal rights through standard acknowledgements or other documents associated with the franchise agreement. Craters & Freighters franchisees should also be aware that California law may impact other aspects of the franchise agreement, such as covenants not to compete, which may not be enforceable under California law.