Which states' franchisees are subject to the 'No Waiver or Disclaimer of Reliance' provision in the Crisp & Green franchise agreement?
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, the 'No Waiver or Disclaimer of Reliance' provision applies to franchisees in specific states that have franchise registration/disclosure laws. This provision ensures that franchisees do not waive any 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, its franchise sellers, or anyone acting on their behalf. This clause takes precedence over any conflicting terms in any document associated with the franchise agreement.
The states where this provision is applicable are California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. This means that if a Crisp & Green franchisee operates in any of these states, they retain their rights to pursue claims under state franchise laws and can rely on statements made by the franchisor without being bound by waivers or disclaimers to the contrary.
For prospective Crisp & Green franchisees in these states, this addendum offers an additional layer of protection. It prevents the franchisor from enforcing waivers that could limit the franchisee's legal recourse. This is particularly important in states with strong franchise laws designed to protect franchisees from potential misrepresentations or unfair practices. Franchisees should carefully review the state-specific addenda to fully understand their rights and protections under the franchise agreement.