What limitations are placed on the franchisee regarding representations made on behalf of Crisp & Green?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
The following provision applies only to franchisees and franchises that are subject to the 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:
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 are protected from waiving claims or disclaiming reliance on statements made by Crisp & Green. Specifically, in states with franchise registration/disclosure laws like California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin, any agreement signed by the franchisee cannot waive claims under state franchise law, including fraud in the inducement.
This means a franchisee cannot sign away their right to sue Crisp & Green for misrepresentation or fraud based on statements made during the franchise sales process. This protection extends to statements made by Crisp & Green, franchise sellers, or anyone acting on their behalf. This provision is designed to protect franchisees from being bound by clauses that might force them to forfeit legal rights they have under state franchise laws.
This clause supersedes any other conflicting terms in any document related to the franchise agreement. Therefore, even if other documents contain language that seems to limit the franchisee's ability to make claims or rely on representations, this specific provision will take precedence in the listed states. This ensures that franchisees in these states retain their legal rights and recourse options, regardless of other contractual language. This addendum serves to protect franchisees from potentially overreaching terms within the franchise agreement, ensuring they maintain their rights under state laws related to franchising.