What specific state law jurisdictional requirements must be met independently for the provisions of the Addendum to the Franchise Disclosure Document to be effective for a Crisp & Green franchise?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
ned 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.
- Each provision of this Addendum shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the Illinois Franchise Disclosure Act are met independently without reference to this Addendum.
Each of the undersigned hereby acknowledges having read and understood this Addendum and consents to be bound by all of its terms.
| CRISP & GREEN FRANCHISING LLC, a Minnesota limited liability company | | |----------------------------------------------------------------------------|--------------------------------------------------------------------| | | (Name of corporation, limited liability company or partnership) | | By: | By: | | Print Name: | Print Name: | | Title: | Title: |
ADDENDUM TO THE CRISP & GREEN AREA DEVELOPMENT AGREEMENT FOR THE STATE OF MARYLAND
Notwithstanding anything to the contrary set forth in the Crisp & Green Franchising LLC Area Development Agreement, the following provisions shall supersede and apply to all Crisp & Green franchises sold to residents in the state of Maryland:
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- Section 5 of the Area Development Agreement is revised to provide that termination upon bankruptcy might not be enforceable under the U.S. Bankruptcy Act, but Franchisor intends to enforce it to the extent enforceable.
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Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to the 2024 Crisp & Green Franchise Disclosure Document, the effectiveness of the addendum's provisions is contingent upon meeting specific jurisdictional requirements of state laws, independently of the addendum itself. For franchisees in Illinois, the provisions of the addendum are effective only if the jurisdictional requirements of the Illinois Franchise Disclosure Act of 1987 are met independently, without relying on the addendum. Similarly, for franchisees in Indiana, the addendum's provisions are effective only if the jurisdictional requirements of the Indiana Deceptive Franchise Practices Law are met independently, without reference to the addendum.
For franchisees in South Dakota, each provision of the addendum is effective only to the extent that the jurisdictional requirements of the South Dakota Franchise Act are met independently, without reference to the addendum, and only to the extent such provision is a valid requirement of the statute. In Virginia, the provisions of the addendum are effective only if the jurisdictional requirements of the Virginia Retail Franchising Act are met independently, without reference to the addendum, and only to the extent such provision is a then valid requirement of the statute.
For franchisees in Wisconsin, each provision of the addendum is effective only to the extent that the jurisdictional requirements of the Wisconsin Franchise Law or the Rules and Regulations promulgated thereunder are met independently without reference to this addendum to the Franchise Disclosure Document. For franchisees in North Dakota, the addendum shall be of no force and effect unless the jurisdictional requirements of the North Dakota Franchise laws and any regulations thereunder are met independently without reference to this Addendum. This means that the protections and modifications outlined in the addendum only apply if the franchisee's situation independently falls under the jurisdiction of these state laws, ensuring that the franchisor cannot use the addendum to create jurisdiction where it wouldn't otherwise exist.
This requirement ensures that Crisp & Green franchisees can only rely on the addendum's provisions if their situation already falls under the protection of their state's franchise laws. This prevents the franchisor from using the addendum to selectively apply certain provisions while avoiding the broader regulatory oversight of the state. Prospective franchisees should consult with a legal professional to determine whether their specific circumstances meet the jurisdictional requirements of their state's franchise laws, ensuring they can benefit from the addendum's protections.