What does the Crave franchisee acknowledge regarding representations made by the franchisor that are contrary to the terms of the Franchise Agreement?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE AND FRANCHISEE'S PRINCIPAL(S) ON BEHALF OF THEMSELVES AND THE FRANCHISEE RELEASORS WAIVE ANY RIGHTS AND BENEFITS CONFERRED BY ANY APPLICABLE PROVISION OF LAW EXISTING UNDER ANY FEDERAL, STATE OR POLITICAL SUBDIVISION THEREOF WHICH WOULD INVALIDATE ALL OR ANY PORTION OF THE RELEASE CONTAINED HEREIN BECAUSE SUCH RELEASE MAY EXTEND TO CLAIMS WHICH THE FRANCHISEE RELEASORS DO NOT KNOW OR SUSPECT TO EXIST IN THEIR FAVOR AT THE TIME OF EXECUTION OF THIS AGREEMENT. Franchisee and Franchisee's Principal(s) also covenant not to bring any suit, action, or proceeding, or make any demand or claim of any type, against any Released Franchisor Party with respect to any Franchisee Released Claim, and Franchisee and Franchisee's Principal(s) shall defend, indemnify, and hold harmless each of Franchisor Releasees against same.
Executed as of PRINCIPALS:
Exhibit I to the Crave Franchise Disclosure Document
FRANCHISEE ACKNOWLEDGMENT STATEMENT
*NOT FOR USE IN MARYLAND*
Acknowledgement of the truthfulness of the statements below are an inducement for the Franchisor to enter into a Franchise Agreement. Notify Franchisor immediately, prior to acknowledgment, if any statement below is incomplete or incorrect.
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.
Franchisee hereby acknowledges the following:
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the franchisee acknowledges that no statement, questionnaire, or acknowledgment signed in connection with the commencement of the franchise relationship can waive claims under applicable state franchise law, including fraud in the inducement. Furthermore, franchisees cannot disclaim reliance on any statement made by Crave, franchise sellers, or anyone acting on behalf of Crave. This provision takes precedence over any other conflicting terms in documents related to the franchise agreement. This acknowledgement is part of the Franchisee Acknowledgment Statement, which is an inducement for Crave to enter into a Franchise Agreement.
In practical terms, this means that even if a franchisee signs a document that seems to contradict earlier representations made by Crave, the franchisee still retains the right to pursue claims based on those prior representations, especially if they involve fraud or misrepresentation. This protects the franchisee from being bound by clauses that might inadvertently waive their legal rights or prevent them from holding Crave accountable for their statements.
This type of clause is included to ensure compliance with state franchise laws, which often have provisions designed to protect franchisees from overreaching by franchisors. By explicitly stating that franchisees do not waive their rights to make claims based on misrepresentations, Crave aims to create a transparent and legally sound franchise relationship. Franchisees should still carefully review all documents and seek legal advice to fully understand their rights and obligations, but this acknowledgement provides an additional layer of protection.