Does the Crisp & Green franchise agreement specify that omission constitutes a waiver?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 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 66–252)
What This Means (2024 FDD)
Based on the 2024 Crisp & Green Franchise Disclosure Document, the franchise agreement does not specify that omission constitutes a waiver. However, the FDD includes addenda for several states (Illinois, New York, Virginia, and Minnesota) that address waivers in the context of franchisee rights and claims. These addenda generally state that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Crisp & Green. These provisions supersede any other conflicting terms in documents related to the franchise agreement. These addenda ensure that franchisees in these states retain their legal rights and protections, regardless of any agreements they may sign during the franchise commencement.
For example, the addendum for Virginia states that any representations or promises outside of the disclosure document, Franchise Agreement, and Area Development Agreement may not be enforceable. This suggests that franchisees should rely primarily on the written agreements and the FDD when making decisions. The New York addendum ensures that the non-waiver provisions of the General Business Law of the State of New York remain in effect, protecting the franchisee's rights under Article 33 of the GBL. Similarly, the Minnesota addendum states that the franchisor cannot require the developer to assent to a release, assignment, novation, or waiver that would relieve any person from liability imposed by Minnesota Statutes, Sections 80C.01 to 80C.22, although voluntary settlements of disputes are permitted.
These stipulations are particularly important for prospective franchisees as they clarify that certain rights cannot be waived through standard agreements, especially concerning state franchise laws and reliance on franchisor statements. This protection helps to ensure that franchisees are not inadvertently relinquishing important legal safeguards. Franchisees should carefully review the specific addendum for their state to understand the full scope of these protections and how they apply to their franchise agreement. It is also advisable to consult with a legal professional to fully understand their rights and obligations under the franchise agreement and applicable state laws.