For Crave franchises, can a franchisee waive claims under any applicable state franchise law or disclaim reliance on statements made by the franchisor through any signed statement or acknowledgment?
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 commencement of 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 documents related to the franchise agreement. However, there are exceptions to this rule in certain states.
For example, the Acknowledgment Statement included as Exhibit I in the Franchise Disclosure Document does not apply to franchisees in Maryland, and they should not sign it. Similarly, in Michigan, the state prohibits certain unfair provisions that might be included in franchise documents, including any requirement that a franchisee assent to a release, assignment, novation, waiver, or estoppel that deprives them of rights and protections under the Michigan franchise laws. However, Michigan law does allow a franchisee to settle claims after entering into a franchise agreement.
In Indiana, franchisees may not agree to waive any claims or rights under Indiana Code 23-2-2.7-1 (10). These stipulations are outlined in state-specific addenda to the Crave Franchise Disclosure Document, Franchise Agreement, and Multi-Unit Development Agreement. These addenda highlight specific amendments and disclosures required by state laws, ensuring that franchisees are aware of their rights and protections within their respective jurisdictions. Prospective franchisees should carefully review the addenda applicable to their state to understand any specific regulations or limitations on waivers and disclaimers.