Does the 'No Waiver or Disclaimer of Reliance' provision apply to all Crisp & Green franchisees, or only those in specific states?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
No Waiver or Disclaimer of Reliance in Certain States. 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 does not apply to all franchisees. Instead, it specifically applies to franchisees and franchises that are subject to state franchise registration/disclosure laws in certain states. These states include California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin.
For franchisees in these listed states, any statement, questionnaire, or acknowledgment signed in connection with starting the franchise relationship cannot waive claims under applicable state franchise law, including claims related to fraud in the inducement. Furthermore, franchisees in these states cannot disclaim reliance on statements made by Crisp & Green, any franchise seller, or anyone acting on their behalf. This provision takes precedence over any conflicting terms in any document related to the franchise agreement.
For example, the FDD includes an addendum specific to California, referencing the California Franchise Investment Law and the California Franchise Relations Act. This addendum reinforces that any provision requiring a franchisee to waive specific provisions of the law is void and unenforceable. It also prevents Crisp & Green from disclaiming or denying representations made to the franchisee or the franchisee's ability to rely on those representations.
Similarly, addenda for states like Maryland and Virginia modify Item 17 of the FDD, concerning renewal, termination, transfer, and dispute resolution, to ensure compliance with their respective state laws. These modifications ensure that franchisees in these states retain their rights and protections under state franchise laws, regardless of what the standard franchise agreement might state. Therefore, prospective franchisees should carefully review the addenda specific to their state to understand their rights and obligations.