Under what conditions are the provisions of the addendum to the Crisp & Green Franchise Disclosure Document effective?
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.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to the 2024 Crisp & Green Franchise Disclosure Document, the addendum's provisions are effective only if the jurisdictional requirements of the relevant state franchise law are independently met, without relying on the addendum itself. This condition applies specifically to addenda for states like Indiana, Virginia, Illinois, and Wisconsin.
For instance, the Indiana addendum states that its provisions are effective only if the jurisdictional requirements of the Indiana Deceptive Franchise Practices Law are met independently, without reference to the addendum. Similarly, the Virginia addendum specifies that its provisions are effective only if the jurisdictional requirements of the Virginia Retail Franchising Act are met independently and only to the extent the provision is a valid requirement of the statute.
This means that for a specific clause within the addendum to apply to a Crisp & Green franchisee, the situation must already fall under the jurisdiction of that state's franchise law, regardless of whether the addendum exists. This ensures that the addendum's clauses are only triggered when the state law has primary authority. This also means that Crisp & Green cannot use the addendum to create jurisdiction where it would not otherwise exist under state law.