exception

For Deck Medic franchisees, can any statement disclaim reliance on statements made by the franchisor?

Deck_Medic Franchise · 2024 FDD

Answer from 2024 FDD Document

No statement, questionnaire or acknowledgement 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 43–228)

What This Means (2024 FDD)

According to Deck Medic's 2024 Franchise Disclosure Document, several state-specific amendments address the enforceability of waivers and disclaimers within the franchise agreement. These amendments, applicable in states like New York, California, Virginia, Washington, Illinois, and Minnesota, clarify that no statement or acknowledgment signed by a franchisee can waive claims under state franchise laws, including those related to fraud in the inducement. More specifically, these amendments prevent franchisees from disclaiming reliance on statements made by Deck Medic, its agents, or franchise sellers. This protection is designed to ensure that franchisees cannot inadvertently forfeit their right to pursue legal remedies based on misrepresentations or misleading information provided during the franchise sales process. Each of these provisions is effective only if the jurisdictional requirements of the corresponding state's franchise law are independently met.

For a prospective Deck Medic franchisee, this means that any attempt by the franchisor to include clauses that force the franchisee to disclaim reliance on prior statements may be unenforceable, depending on the state in which the franchise operates. This provides an added layer of protection against potential misrepresentations made during the franchise sales process. The franchisee retains the right to claim reliance on statements made by Deck Medic, which is a crucial safeguard in the event of disputes or allegations of fraud. This also means that Deck Medic cannot deny representations made to the franchisee.

It is important to note that these protections are specifically tied to state franchise laws and their jurisdictional requirements. Therefore, the extent to which these provisions apply may vary based on the franchisee's location and the specific circumstances of the franchise agreement. Franchisees should consult with legal counsel to fully understand their rights and protections under applicable state laws. The FDD also recommends that franchisees have the agreement and Franchise Disclosure Document reviewed by their lawyer, accountant, and other business advisors prior to signing.

Deck Medic also states that they may waive or modify comparable provisions of other Franchise Agreements to other System franchisees in a non-uniform manner. This means that Deck Medic is not obligated to offer the same terms to each franchisee.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.