What is the Crisp & Green franchisee's responsibility regarding representations about the relationship between the franchisee and franchisor?
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)
According to the 2024 Crisp & Green Franchise Disclosure Document, franchisees must understand that certain statements or agreements they make during the franchise commencement cannot waive their rights under state franchise laws. Specifically, franchisees cannot disclaim reliance on statements made by Crisp & Green or its representatives. This protection extends to claims of fraud in the inducement. This provision takes precedence over any conflicting terms in other franchise documents.
Several states, including California, Hawaii, Maryland, Minnesota, New York, Virginia and Washington, have specific addenda that reinforce this principle. For example, California law prohibits Crisp & Green from disclaiming representations made to the franchisee or denying the franchisee's ability to rely on those representations. Similarly, Hawaii stipulates that filing the franchise does not constitute an endorsement by the Director of Regulatory Agencies, and New York requires a statement on the cover page clarifying that registration does not imply recommendation by the state.
These stipulations ensure that franchisees are protected from misleading information and retain their legal rights, regardless of any agreements signed during the franchise process. Prospective Crisp & Green franchisees should carefully review these addenda and understand their rights under the laws of their specific state. This ensures that franchisees can make informed decisions based on accurate information and are not bound by unfair waivers or disclaimers.