In which states is the Franchisee Acknowledgment (Exhibit F) not applicable for a Crisp & Green franchise?
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 22 — CONTRACTS (FDD page 66)
What This Means (2024 FDD)
According to the 2024 Crisp & Green Franchise Disclosure Document, Exhibit H clarifies that in certain states, no statement, questionnaire, or acknowledgment signed by the franchisee can waive claims under state franchise law or disclaim reliance on statements made by Crisp & Green. This means that the standard Franchisee Acknowledgment (Exhibit F) is superseded by state-specific addenda in those locations.
The states for which this provision applies are California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. In these states, franchisees retain their rights under state franchise laws, including the right to pursue claims of fraud in the inducement, regardless of any acknowledgments they may have signed. This offers franchisees in these states greater protection and recourse.
For prospective Crisp & Green franchisees, this means that if their franchise is located in one of the listed states, they cannot waive their rights under state franchise law through any signed documents. This ensures that franchisees in these states maintain their legal rights and protections, regardless of any standard acknowledgments or waivers that might be part of the franchise agreement. It is important for franchisees to understand the specific addenda applicable to their state to fully grasp their rights and obligations.