What constitutes a waiver by Creative World School under the franchise agreement?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
No statement, questionnaire or acknowledgement 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 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 80–247)
What This Means (2025 FDD)
According to the 2025 Creative World School FDD, a waiver is defined within the context of statements, questionnaires, or acknowledgements signed by a franchisee at the start of their franchise relationship. Specifically, these documents cannot waive a franchisee's rights to make claims under applicable state franchise law, including claims related to fraud in the inducement. Additionally, these documents cannot disclaim reliance on statements made by Creative World School. This protection is highlighted in addenda to the franchise agreement for franchisees in New York, Virginia, and Maryland. This provision takes precedence over any conflicting terms in other franchise documents.
This means that even if a franchisee signs a document that appears to limit their ability to sue Creative World School for violations of franchise law or for misrepresentations made during the franchise sales process, that document will not be legally binding. This is a significant protection for franchisees, as it prevents Creative World School from using fine print or boilerplate language to shield itself from liability. The FDD emphasizes the importance of protecting franchisees' rights under state franchise laws.
For prospective Creative World School franchisees, this information is reassuring. It confirms that the franchise agreement is designed to comply with state laws aimed at protecting franchisees. Franchisees should still carefully review all documents before signing, but they can be confident that certain basic rights cannot be waived away through standard paperwork. This clause ensures that franchisees retain their legal recourse in case of disputes or misrepresentations, aligning with common franchise regulations that seek to balance the franchisor-franchisee relationship.