For Crisp & Green, can a franchisee disclaim reliance on any statement made by the franchisor or their representatives through any statement or acknowledgment signed in connection with the franchise relationship?

According to Crisp & Green's 2024 Franchise Disclosure Document, in many states, a franchisee cannot disclaim reliance on statements made by the franchisor or their representatives. Specifically, for 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, any statement, questionnaire, or acknowledgment signed by the franchisee cannot waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor or their representatives. This provision overrides any conflicting terms in any document related to the franchise agreement.

This protection ensures that franchisees in these states retain their legal rights and are not bound by agreements that could prevent them from pursuing claims based on misrepresentations or fraud. The inclusion of specific states indicates that these jurisdictions have laws in place to protect franchisees from potentially overreaching franchisor practices.

For prospective Crisp & Green franchisees, this means that any attempt by the franchisor to include a clause that disclaims reliance on their statements would be unenforceable in those listed states. Franchisees should be aware of this protection and consult with legal counsel to understand their rights under state franchise laws. This provision aims to create a fairer balance of power between the franchisor and franchisee, ensuring that the franchisee's ability to seek legal recourse is not compromised by contractual language.