Can a Crisp & Green franchisee disclaim reliance on statements made by the franchisor or its representatives through any document executed in connection with the franchise?

According to Crisp & Green's 2024 Franchise Disclosure Document, in certain states, a franchisee cannot waive claims under state franchise law or disclaim reliance on statements made by the franchisor or its representatives. This protection is explicitly stated in addenda for franchisees subject to 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 overrides any other conflicting terms in any document related to the franchise agreement.

This means that Crisp & Green franchisees in those listed states retain their legal rights to pursue claims, including fraud in the inducement, based on statements made by the franchisor, franchise sellers, or anyone acting on their behalf. The franchisee's ability to hold Crisp & Green accountable for representations made during the franchise sales process is protected by state law.

For a prospective Crisp & Green franchisee, this is a significant safeguard. It ensures that any promises or representations made by the franchisor during the sales process carry legal weight, and the franchisee cannot inadvertently waive their right to hold the franchisor accountable for those statements. This protection is particularly important in states with strong franchise laws, as it reinforces the franchisee's ability to seek legal recourse if they believe they were misled or defrauded.

However, it is important to note that these protections are specific to the states listed. Franchisees in other states may not have the same level of protection against disclaiming reliance on franchisor statements. Therefore, prospective franchisees should carefully review the FDD and any state-specific addenda to understand their rights and obligations fully.