Which states are exempt from the acknowledgement regarding reliance on other representations in the Craters & Freighters agreement?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
ipulation 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.
-
- Minnesota law provides you with certain termination and nonrenewal rights. As of the date of this Disclosure Document, Minn. Stat. Sec. 80C.14, Subd.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, franchisees in California, Illinois, Maryland, Minnesota, Virginia, and Washington are protected by state-specific addenda that prevent them from waiving claims or disclaiming reliance on statements made by Craters & Freighters or its representatives. This means that any acknowledgement signed by the franchisee regarding their reliance on representations made by Craters & Freighters does not waive their rights under applicable state franchise laws, including claims of fraud.
Specifically, the FDD includes addenda for these states that modify the standard franchise agreement to ensure compliance with state franchise laws. These modifications typically state that no acknowledgement signed by the franchisee can waive claims or disclaim reliance on statements made by the franchisor. This is particularly important because it protects franchisees from inadvertently giving up their legal rights during the initial stages of the franchise relationship.
For a prospective Craters & Freighters franchisee in these states, this means that they retain the right to pursue legal claims against the franchisor, even if they have signed documents acknowledging certain aspects of the franchise offering. This protection is designed to ensure that franchisees are not unfairly disadvantaged by contractual terms that might otherwise limit their ability to seek legal recourse. It is a beneficial provision that aligns with the intent of state franchise laws to protect franchisees from potential overreach by franchisors.