What does the provision regarding waiver of claims and disclaiming reliance supersede in the context of a Crisp & Green franchise?
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, a specific provision addresses the waiver of claims and disclaiming reliance. This provision ensures that no statement, questionnaire, or acknowledgment signed by a franchisee at the start of their franchise relationship can waive claims under applicable state franchise law, including claims related to fraud in the inducement. It also prevents franchisees from disclaiming reliance on statements made by Crisp & Green, franchise sellers, or anyone acting on their behalf.
This safeguard is particularly relevant in states with franchise registration/disclosure laws, including California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. For franchisees in these states, this provision overrides any other conflicting terms in any document executed concerning the franchise. This means that even if other documents contain language that could be interpreted as a waiver of rights or a disclaimer of reliance, this specific provision takes precedence.
In practical terms, this addendum protects Crisp & Green franchisees by ensuring they retain their legal rights and recourse in case of disputes or misrepresentations. It prevents the franchisor from using standard contract language to shield themselves from liability related to fraud or violations of state franchise laws. This protection is a significant benefit for franchisees, as it reinforces the importance of accurate and reliable information during the franchise sales process and preserves their ability to seek legal remedies if necessary.