Does any statement signed by a Crave franchisee 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, a franchisee cannot disclaim reliance on statements made by Crave or anyone acting on its behalf. Specifically, any statement, questionnaire, or acknowledgment signed by a Crave franchisee in connection with starting the franchise relationship cannot waive claims under state franchise law, including fraud, or disclaim reliance on statements made by Crave. This protection is explicitly stated to override any other conflicting terms in any document related to the franchise agreement. This ensures that franchisees retain their legal rights and protections, preventing them from inadvertently relinquishing their ability to pursue claims based on misrepresentations or fraud.
This provision is particularly important for prospective franchisees as it safeguards them against potential overreach by the franchisor. It means that even if a franchisee signs a document that appears to disclaim reliance on the franchisor's statements, that disclaimer will not be legally enforceable. This protection is designed to ensure that franchisees can rely on the information provided by Crave during the franchise sales process and are not penalized for doing so. The FDD highlights this protection to ensure franchisees are aware of their rights and the limitations on waivers or disclaimers.
Furthermore, the Crave FDD includes an acknowledgment statement in Exhibit I, which is not for use in Maryland. This suggests that Maryland franchisees have additional or different protections under state law. The inclusion of these specific stipulations and disclaimers indicates Crave's awareness of and compliance with various state franchise laws, further reinforcing the commitment to protecting franchisees' rights and interests. Prospective franchisees should carefully review these provisions and understand their implications before entering into a franchise agreement with Crave.