Are there any exceptions to the governing law specified in the Craters & Freighters franchise agreement?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
| The following modifications are to the Franchise Disclosure Document of Craters & Freighters | |
|---|---|
| Franchise Company and may supersede, to the extent then required by valid applicable state law, certain | |
| portions of the Franchise Agreement dated, 20 | |
| The provisions of this State Law Addendum to the Franchise Disclosure Document and Franchise | |
| Agreement ("State Addendum") apply only to those persons residing or operating Craters & Freighters |
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.
In recognition of the restrictions contained in Section 13.1-564 of the Virginia Retail Franchising Act, the Franchise Disclosure Document for Craters & Freighters Franchise Company for use in the Commonwealth of Virginia shall be amended as follows:
Additional Disclosure. The following statements are added to Item 17.h.
Under Section 13.1-564 of the Virginia Retail Franchising Act, it is unlawful for a franchisor to cancel a franchise without reasonable cause. If any grounds for default or termination stated in the Franchise Agreement does not constitute "reasonable cause," as that term may be defined in the Virginia Retail Franchising Act or the laws of Virginia, that provision may not be enforceable."
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.
In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW will prevail.
RCW 19.100.180 may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise. There may also be court decisions which may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise.
Item 17(d) of the Franchise Agreement table and Item 17(d) of the Area Development Agreement in the Franchise Disclosure Document are amended to state that the franchisee may terminate under any grounds permitted by law.
Item 17(v) of the Area Development Agreement table in the Franchise Disclosure Document is amended to disclose that the franchise agreement's provisions regarding termination by the franchisee are subject to state law.
Within the context of RCW 19.100.180(1), Section 14 of the Franchise Agreement is amended to state: "Franchisee has no obligation to indemnify or hold harmless an indemnified party for losses to the
extent that they are determined to have been caused solely and directly by the indemnified party's negligence, willful misconduct, strict liability, or fraud."
Section 15.4 of the Franchise Agreement will not apply in the State of Washington.
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.
Any general release which you must sign will not apply with respect to claims arising under the Washington Franchise Investment Protection Act, RCW 19.100, and the rules adopted thereunder.
Sections 25.5(d)(i) through 25.5(d)(v) of the Franchise Agreement will not apply in the State of Washington.
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 state law addenda that may supersede certain portions of the franchise agreement. For franchisees operating in Virginia, no statement can waive claims under state franchise law or disclaim reliance on franchisor statements. The FDD notes that any grounds for default or termination stated in the Franchise Agreement that do not constitute "reasonable cause" under Virginia law may not be enforceable.
For franchisees in Illinois, Illinois law governs the Franchise Agreements. Any provision designating jurisdiction and venue outside of Illinois is void, although arbitration outside of Illinois is permitted. The franchisee's rights upon termination and non-renewal are specifically set forth in the Illinois Franchise Disclosure Act. Furthermore, any provision that attempts to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void.
In Washington, the Washington Franchise Investment Protection Act will prevail in the event of a conflict of laws. RCW 19.100.180 may supersede the franchise agreement, particularly in areas of termination and renewal. The agreement is also amended to state that the franchisee has no obligation to indemnify or hold harmless an indemnified party for losses caused solely by the indemnified party's negligence, willful misconduct, strict liability, or fraud. Additionally, certain sections of the Franchise Agreement, specifically 15.4 and 25.5(d)(i) through 25.5(d)(v), do not apply in Washington. Any general release signed by the franchisee will not apply to claims arising under the Washington Franchise Investment Protection Act.