Are Craters & Freighters' representations in the Franchise Disclosure Document disclaimed by the Franchise Agreement?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
- 25.1 Entire Agreement. This Agreement and the documents referred to herein will be construed together and constitute the entire Agreement between the parties hereto and supersede all prior negotiations, understandings, representations, and agreements, if any. However, nothing in this Agreement or any related agreement is intended to disclaim Franchisor's representations made in Franchisor's Franchise Disclosure Document. No amendment, change, or variance from this Agreement will be binding on either party hereto unless executed in writing by both parties hereto.
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 does not disclaim the representations made in the Franchise Disclosure Document. Section 25.1 of the franchise agreement states that nothing in the agreement or any related agreement is intended to disclaim Craters & Freighters' representations made in the Franchise Disclosure Document. This protects the franchisee by ensuring that they can rely on the information provided by Craters & Freighters during the franchise sales process.
Furthermore, addenda for certain states like California, Minnesota, Virginia, and Washington reinforce this protection. These state-specific addenda clarify that no statement, questionnaire, or acknowledgment signed by the franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Craters & Freighters. This means that franchisees in these states have additional legal safeguards against misrepresentations made by the franchisor.
In practical terms, this means a prospective Craters & Freighters franchisee can take comfort that the information presented in the Franchise Disclosure Document is considered binding and cannot be contradicted or disclaimed by other provisions in the franchise agreement. This is a beneficial provision for franchisees, as it provides a legal basis for holding Craters & Freighters accountable for the accuracy and completeness of the information provided during the franchise sales process. Franchisees should still carefully review all documents and seek legal counsel to fully understand their rights and obligations.