What effect does the 'No Waiver or Disclaimer of Reliance' provision have on statements signed by Crisp & Green franchisees in applicable states?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
The following provision applies only to franchisees and franchises that are subject to the state franchise registration/disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin:
No statement, questionnaire, or acknowledgement signed or agreed to by you 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 us, any franchise seller, or any other person acting on our behalf. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, a 'No Waiver or Disclaimer of Reliance' provision is included as an addendum for franchisees in certain states. Specifically, this provision applies to franchisees and franchises subject to state franchise registration/disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin.
This provision ensures that no statement, questionnaire, or acknowledgment signed by a franchisee at the start of their franchise relationship can waive claims under applicable state franchise laws. This includes claims related to fraud in the inducement. It also prevents franchisees from disclaiming reliance on statements made by Crisp & Green, franchise sellers, or anyone acting on their behalf.
In essence, this addendum protects franchisees in these states by preventing Crisp & Green from using signed documents to avoid liability for misrepresentations or violations of state franchise laws. The provision explicitly states that it supersedes any other conflicting terms in any document related to the franchise agreement, reinforcing its importance. This type of clause is not uncommon in franchise agreements to protect franchisees' rights under state laws.