In which states does the 'No Waiver or Disclaimer of Reliance' provision apply to Crisp & Green franchisees?
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 in these states cannot waive claims under 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 overrides any conflicting terms in any document signed in connection with the franchise agreement.
The states where this provision is applicable include 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, this is a beneficial provision as it provides an added layer of protection. It ensures that their legal rights under state franchise laws are preserved and that they can hold the franchisor accountable for any misrepresentations or fraudulent statements made during the franchise sales process. This can be particularly important in states with strong franchise protection laws, offering franchisees greater recourse in case of disputes or issues arising from the franchise agreement.