Under what conditions can Crisp & Green revoke a waiver?

According to Crisp & Green's 2024 Franchise Disclosure Document, a waiver signed by a franchisee regarding claims under state franchise law or reliance on statements made by the franchisor is generally not enforceable in certain states. Specifically, for franchisees and franchises subject to the franchise registration/disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin, any such waiver is ineffective. This means that Crisp & Green cannot enforce a franchisee's waiver of rights or disclaimer of reliance in these states.

This provision is designed to protect franchisees by ensuring they retain their rights under state franchise laws, including the right to bring claims for fraud in the inducement. It prevents Crisp & Green from using waivers to shield themselves from liability for misrepresentations or violations of franchise laws. The FDD explicitly states that this provision supersedes any other conflicting terms in any document executed in connection with the franchise agreement.

Furthermore, the addendum for Maryland specifies that the general release language required as a condition of renewal, sale, or transfer will not apply to claims arising under the Maryland Franchise Registration and Disclosure Law. This reinforces the franchisee's ability to pursue claims under Maryland law, even if they have signed a general release. Similarly, the New York addendum ensures that the non-waiver provisions of the New York General Business Law remain in force, protecting the franchisee's rights under New York law. These state-specific addenda highlight the importance of franchisees understanding their rights and protections under the laws of their respective states.