Does the Crisp & Green franchise agreement require franchisees to acknowledge receipt of the franchise agreement itself?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 23: RECEIPTS]
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 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 with the franchise.
Each provision of this Addendum shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the Illinois Franchise Disclosure Act of 1987 are met independently without reference to this Addendum to the Disclosure Document.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to the 2024 Crisp & Green Franchise Disclosure Document, Item 23 addresses receipts and acknowledgments related to the franchise relationship. Specifically, it states that no acknowledgment signed by a franchisee in connection with starting the franchise can waive claims under state franchise law or disclaim reliance on statements made by Crisp & Green. This general statement appears in addenda for multiple states, including Indiana, Virginia, and Illinois.
Furthermore, the addendum to the Crisp & Green Area Development Agreement for the state of North Dakota states that each of the undersigned acknowledges having read and understood the addendum and consents to be bound by all of its terms. This acknowledgment specifically pertains to the addendum itself, indicating that franchisees in North Dakota must confirm they have read and understood the additional terms applicable to their agreement in that state.
In addition, the example Letter of Intent included as Exhibit D requires the recipient to sign the letter to acknowledge agreement with the business terms and conditions outlined within the letter. This letter includes terms relating to the application to become a franchisee and Crisp & Green's evaluation of the application. This suggests that Crisp & Green seeks acknowledgment of certain preliminary agreements and understandings before a formal franchise agreement is signed.