Does the provision regarding waiver of claims and disclaiming reliance supersede other terms in documents executed in connection with the Craters & Freighters franchise?

According to the 2025 Craters & Freighters Franchise Disclosure Document, a specific provision addresses the waiver of claims and disclaiming reliance, and it does supersede other terms in documents executed in connection with the franchise. This means that any statement, questionnaire, or acknowledgment signed by a franchisee at the start of their franchise relationship cannot waive claims under state franchise law, including claims related to fraud in the inducement, or disclaim reliance on statements made by Craters & Freighters, its franchise sellers, or anyone acting on their behalf. This protection is designed to ensure franchisees are not unknowingly giving up their legal rights. This provision is applicable in several states including California, Illinois, Minnesota, New York, Virginia and Washington.

For a prospective Craters & Freighters franchisee, this is a crucial safeguard. It prevents the franchisor from using standard contract language to shield itself from liability for misrepresentations or violations of franchise laws. The franchisee retains the right to pursue legal action if they believe they were misled or defrauded, regardless of any waivers they may have signed. This offers a level of security and recourse that might not be available in franchise systems without such explicit protections.

However, franchisees should be aware that the specific protections and superseding nature of this provision may be subject to state-specific laws and interpretations. For example, the Washington Addendum indicates that the Washington Franchise Investment Protection Act and court decisions may supersede the franchise agreement in areas like termination and renewal. Similarly, in Maryland, specific revisions are made to the Franchise Disclosure Document and Franchise Agreement to ensure compliance with the Maryland Franchise Registration and Disclosure Law. Therefore, franchisees should carefully review the addenda and modifications applicable to their specific state to fully understand their rights and obligations.

In summary, while the Craters & Freighters franchise agreement includes a provision that aims to protect franchisees from unknowingly waiving their rights, the actual scope and application of this provision can vary by state. Prospective franchisees should consult with a legal professional to fully understand how these protections apply in their specific jurisdiction and to ensure they are aware of all their rights under the franchise agreement and applicable state laws.