Regarding the Crave franchise, what is the effect of any statement, questionnaire, or acknowledgment signed by a franchisee that disclaims reliance on statements made by the franchisor?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
| 1. | Franchise Agreement | Exhibit B—1 | |----|-------------------------------------|-------------| | 2. | Food Truck Addendum | Exhibit B—2 | | 3. | Commercial Sub-Lease Agreement | Exhibit B—3 | | 4. | Multi-Unit Development Agreement | Exhibit C | | 5. | General Release | Exhibit H | | 6. | Franchisee Acknowledgment Statement | Exhibit I | As permitted by state law. 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, any statement, questionnaire, or acknowledgment signed by a franchisee in connection with starting the franchise relationship will not waive claims under state franchise law, including fraud, or disclaim reliance on statements made by Crave, its sellers, or representatives. This protection is in place to ensure franchisees are not bound by agreements that could strip away their legal rights or defenses against misrepresentations.
This provision is designed to supersede any other conflicting terms within any document executed as part of the franchise agreement. This means that even if other parts of the agreement seem to suggest a franchisee is waiving certain rights or disclaiming reliance on Crave's statements, this specific clause takes precedence, reinforcing the franchisee's protections under applicable state franchise laws.
For prospective Crave franchisees, this is a crucial safeguard. It means that signing an acknowledgment or questionnaire will not prevent them from pursuing legal claims related to fraud or misrepresentation, should they arise. This protection is particularly important in the context of franchise sales, where franchisees often rely heavily on the franchisor's representations about potential earnings, market conditions, and the overall viability of the business. Franchisees in Maryland should note that the Acknowledgment Statement in Exhibit I of the Franchise Disclosure Document does not apply to them.