In Washington, can a Crisp & Green franchisee disclaim reliance on statements made by the franchisor?
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 the 2024 Crisp & Green Franchise Disclosure Document, franchisees in Washington cannot disclaim reliance on statements made by the franchisor. This protection is explicitly stated in an addendum to the FDD that applies to franchisees subject to franchise registration/disclosure laws in Washington and other states.
Specifically, any statement, questionnaire, or acknowledgment signed by a Crisp & Green franchisee at the start of their franchise relationship cannot waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor, franchise seller, or anyone acting on the franchisor's behalf. This provision takes precedence over any conflicting terms in other documents related to the franchise agreement.
This measure ensures that Crisp & Green franchisees in Washington are protected from being bound by clauses that might prevent them from pursuing legal recourse based on misrepresentations or misleading statements made during the franchise sales process. The addendum aims to uphold the Washington Franchise Investment Protection Act and provide a fair legal landscape for franchisees.