Which states are excluded from the acknowledgement regarding reliance on representations for Craters & Freighters franchisees?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
n supersedes any other term of any document executed in connection with the franchise.
DATED this day of, 20 CRATERS & FREIGHTERS FRANCHISE COMPANY
ILLINOIS
Illinois law governs the Franchise Agreement(s).
In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
Your rights upon Termination and Non-Renewal are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act.
In conformance with section 41 of the Illinois Franchise Disclosure Act, any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
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.
DATED this day of, 20 CRATERS & FREIGHTERS FRANCHISE COMPANY
MARYLAND
Item 17.f, Termination by Franchisor with Cause, of the Franchise Disclosure Document and Section 25.3.12 of the Franchise Agreement are revised to include the following: "Franchisor's termination of the Franchise Agreement because of Franchisee's bankruptcy may not be enforceable under applicable federal law (11 U.S.C.A. 101 et seq.)."
Item 17.v, Choice of Forum, of the Franchise Disclosure Document and Section 32.1 of the Franchise Agreement are revised to include the following: "Franchisee may bring a lawsuit in Maryland for claims under the Maryland Franchise Registration and Disclosure Law.
The following language is added to the Franchise Agreement: "All representations requiring prospective franchisees to assent to a release, estoppel or waiver of liability are not intended to nor shall they act as a release, estoppel or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law."
Item 17.c, Requirements for Franchisee to Renew or Extend, and Item 17.m, Conditions for Franchisor's Approval of Transfer, of the Franchise Disclosure Document, and Section 32.4 of the Franchise Agreement are revised to include the following: "The general release required as a condition of renewal and/or assignment/transfer will not apply to any liability under the Maryland Franchise Registration and Disclosure Law."
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.
DATED this day of, 20 CRATERS & FREIGHTERS FRANCHISE COMPANY
MINNESOTA
The following applies to franchises and franchisees subject to Minnesota statutes and regulations. Item numbers correspond to those in the main body.
ITEM 17.
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- Minnesota law provides you with certain termination and nonrenewal rights. As of the date of this Disclosure Document, Minn. Stat. Sec. 80C.14, Subd. 3, 4 and 5 which require, (except in certain specified cases) that you be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice for non-renewal of the Franchise Agreement; and that consent to the transfer of the franchise will not be unreasonably withheld.
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- Minn. Stat. § 80C.21 and Minn. Rule 2860.4400J prohibit us from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring the franchisee to consent to liquidated damages, termination penalties or judgment notes.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, franchisees in Illinois, Minnesota, Virginia, and Washington are protected by state-specific addenda that prevent them from waiving certain rights or disclaiming reliance on franchisor representations.
Specifically, Craters & Freighters franchisees in these states cannot sign any document that would waive claims under state franchise law, including claims of fraud. This means that Craters & Freighters franchisees in these states retain their legal rights and protections under their respective state laws, regardless of any agreement they sign with the franchisor.
For a prospective Craters & Freighters franchisee, this is a significant benefit. It ensures that they cannot inadvertently give up their legal rights through standard franchise agreements. It also provides an added layer of protection against misrepresentations made by the franchisor during the franchise sales process. Franchisees in these states have stronger legal recourse if they believe they were misled or defrauded.
The inclusion of these state-specific provisions reflects a commitment to compliance with state franchise laws and a recognition of the importance of franchisee protection. Prospective franchisees outside of these states should consult with a legal professional to understand the extent to which similar protections may be afforded to them under the laws of their state.