What is the franchisee's responsibility regarding claimed misrepresentations by Crisp & Green?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
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, franchisees in certain states like California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin, have specific protections against waiving claims related to misrepresentations. Specifically, no statement, questionnaire, or acknowledgment signed by the franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Crisp & Green or its representatives. This provision takes precedence over any conflicting terms in other franchise documents.
This means that Crisp & Green franchisees in these states retain their legal rights to pursue claims of fraud or misrepresentation, even if they have signed agreements that appear to waive such claims. This protection is particularly important because it prevents Crisp & Green from using standard contract language to shield itself from liability for misleading a franchisee.
For a prospective Crisp & Green franchisee, this addendum offers a degree of security, ensuring that they are not forced to forfeit their rights to legal recourse in case of misrepresentation. However, franchisees should be aware that these protections are state-specific and may not apply if their franchise is located outside of the listed states. It is important to consult with a legal professional to fully understand their rights and obligations under the franchise agreement and applicable state laws.