Can a waiver granted by Crisp & Green be revoked?
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, in certain states with franchise registration/disclosure laws, any statement, questionnaire, or acknowledgment signed by a franchisee at the start of the franchise relationship cannot waive claims under state franchise law, including claims of fraud. Nor can these documents disclaim reliance on statements made by Crisp & Green or its representatives. This provision overrides any conflicting terms in other franchise documents. The states to which this applies include California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin. This ensures franchisees in these states retain their legal rights and protections under state franchise laws, regardless of any agreements made during the initial franchising process.
For prospective Crisp & Green franchisees in these specified states, this addendum provides a safeguard against unknowingly relinquishing their rights through standard franchise agreements. It ensures that franchisees can pursue legal claims, such as fraud in the inducement, and that they can rely on statements made by the franchisor during the franchise sales process. This protection is particularly important because franchise agreements often contain clauses that could be interpreted as waivers or disclaimers, potentially limiting the franchisee's ability to seek legal recourse.
The inclusion of this provision in the FDD highlights Crisp & Green's adherence to state franchise laws and its commitment to ensuring franchisees are aware of their rights. It also reflects the varying levels of franchise regulation across different states, with some states providing stronger protections for franchisees than others. This addendum serves to level the playing field, ensuring that franchisees in the listed states are not disadvantaged by potentially overreaching terms in the franchise agreement.
However, it is important to note that this protection applies specifically to claims arising under state franchise law. Other types of waivers or agreements may still be enforceable, depending on the specific circumstances and the laws of the relevant state. Franchisees should consult with an attorney to fully understand their rights and obligations under the franchise agreement and applicable state laws.