For Crave franchisees, can any statement signed in connection with the franchise relationship waive claims under state franchise law or disclaim reliance on statements made by the franchisor?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, generally, no statement, questionnaire, or acknowledgment signed by a franchisee regarding the franchise relationship can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Crave or its representatives. This provision supersedes any other conflicting terms in any document related to the franchise agreement. This protection is explicitly stated in Item 23 of the FDD.
However, there are exceptions and specific considerations depending on the state. For example, the Acknowledgment Statement in Exhibit I of the FDD does not apply to franchisees in Maryland, and they should not sign it. In Maryland, the general release required for renewal, sale, or transfer does not apply to liability under the Maryland Franchise Registration and Disclosure Law, and franchisees can bring lawsuits in Maryland for claims arising under this law within three years of the franchise grant.
In Michigan, certain unfair provisions that might appear in franchise documents are void and unenforceable, including any requirement for a franchisee to assent to a release or waiver that deprives them of rights and protections under Michigan franchise law. Similarly, in Indiana, franchisees cannot agree to waive any claims or rights under Indiana Code 23-2-2.7-1 (10). These state-specific addenda highlight the importance of franchisees understanding the specific protections and restrictions applicable in their state.
Prospective Crave franchisees should carefully review the state-specific addenda and exhibits to the Franchise Disclosure Document, particularly Exhibit I and any state-specific amendments to Item 23, to fully understand their rights and obligations. It is also advisable to consult with an attorney experienced in franchise law to ensure full comprehension of the legal implications of the franchise agreement in their specific state.