For Deck Medic franchisees, can any statement waive claims under state franchise law?
Deck_Medic Franchise · 2024 FDDAnswer 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 releases related to state franchise laws. For franchisees in California, the Franchise Investment Law states that any provision requiring a franchisee to waive specific provisions of the law is void and unenforceable. Similarly, in Illinois, any condition that binds a person acquiring a franchise to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void.
For Deck Medic franchisees in Maryland, the general release required as a condition of renewal, sale, or transfer does not apply to any liability under the Maryland Franchise Registration and Disclosure Law. Moreover, franchisees can bring lawsuits in Maryland for claims arising under this law, provided they do so within three years after the franchise grant. In Minnesota, no agreement can reduce a franchisee's rights under Minnesota Statutes, Chapter 80C, or their rights to any procedure, forum, or remedies provided by the laws of the jurisdiction.
Across multiple states, including New York, California, Maryland, Virginia, Illinois, and Minnesota, the FDD specifies that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under any applicable state franchise law, including claims of fraud in the inducement, or disclaim reliance on statements made by Deck Medic or its representatives. This provision supersedes any other conflicting terms in the franchise agreement, reinforcing the protection of franchisees' rights under state laws.