Under the Crisp & Green franchise agreement, what is the effect of a written instrument from the franchisee waiving an obligation?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
No statement, questionnaire, or acknowledgment signed 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.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to the 2024 Crisp & Green Franchise Disclosure Document, a statement, questionnaire, or acknowledgment signed by a franchisee at the start of the franchise relationship cannot waive claims under applicable state franchise law. This includes claims related to fraud in the inducement or disclaiming reliance on statements made by Crisp & Green or its representatives. This provision overrides any other conflicting terms in the franchise documents.
This means that even if a franchisee signs a document that appears to waive their rights, that waiver may not be enforceable, especially concerning state franchise laws or claims of fraud. This protection is particularly relevant during the initial stages of the franchise when franchisees might feel pressured to agree to certain terms.
Several states, including Virginia, Maryland, Illinois, Indiana, and Washington, have specific addenda reinforcing these protections. For example, in Maryland, general release language required for renewal, sale, or transfer does not apply to claims arising under the Maryland Franchise Registration and Disclosure Law. Similarly, in Washington, releases related to transfer or general agreements do not waive liabilities under the Washington Franchise Investment Protection Act. These addenda ensure that franchisees retain their rights under state laws, regardless of any waivers they might have signed.
Prospective Crisp & Green franchisees should be aware of these protections and consult with legal counsel to understand their rights fully under the franchise agreement and applicable state laws. This ensures that they are not unknowingly waiving rights that are legally protected.