Can a Deck Medic franchisee disclaim reliance on statements made by the franchisor or its representatives in connection with the franchise relationship?

According to the 2024 Deck Medic Franchise Disclosure Document, a franchisee cannot disclaim reliance on statements made by Deck Medic or its representatives in connection with the franchise relationship. Several state-specific amendments included in Item 23 clarify this point. Specifically, amendments for California, Connecticut, Illinois, Minnesota, New York, Virginia, and Washington state that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor or its representatives. This provision supersedes any other conflicting terms in the franchise agreement.

This protection ensures that Deck Medic franchisees are not bound by clauses that might prevent them from pursuing legal action based on misrepresentations or false statements made by the franchisor during the franchise sales process. This is particularly important because the franchise relationship relies heavily on the information provided by the franchisor to the franchisee. By preventing franchisees from disclaiming reliance, these state laws aim to protect franchisees from potential deception or misleading information.

For prospective Deck Medic franchisees, this means that any document they sign during the commencement of the franchise relationship cannot be used to prevent them from claiming they relied on statements made by Deck Medic. This offers a degree of security, allowing franchisees to hold the franchisor accountable for the accuracy and truthfulness of their representations. However, it is important to note that these protections are often specific to state franchise laws, and the extent of these protections can vary depending on the franchisee's location.

Deck Medic franchisees should consult with a legal professional to fully understand their rights and protections under the franchise agreement and applicable state laws. This will help ensure they are aware of their ability to rely on statements made by the franchisor and the recourse available to them if those statements prove to be false or misleading.