Does the amendment to the Deer Solution Franchise Agreement allow a franchisee to disclaim reliance on statements made by the franchisor?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 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 55–246)
What This Means (2025 FDD)
According to the 2025 Deer Solution Franchise Disclosure Document, the amendment to the franchise agreement does not allow a franchisee to disclaim reliance on statements made by the franchisor. Specifically, the FDD states that no statement, questionnaire, or acknowledgement signed by a franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor or their representatives. This provision overrides any conflicting terms in the franchise agreement. This protection is reiterated in the state-specific amendments for California, New York, Illinois, North Dakota, Minnesota, Hawaii, Maryland, and Virginia.
This means that Deer Solution franchisees retain the right to pursue legal action based on misrepresentations or fraudulent statements made by the franchisor during the franchise sales process, regardless of any disclaimers they may have signed. This is a significant protection for franchisees, as it prevents franchisors from using contractual language to shield themselves from liability for misleading statements.
Prospective Deer Solution franchisees should understand that while the franchise agreement cannot force them to disclaim reliance on the franchisor's statements, it is still crucial to conduct thorough due diligence. This includes verifying the franchisor's claims, consulting with existing franchisees, and seeking legal advice before signing the agreement. This protection is particularly important in states with franchise laws designed to protect franchisees from overreaching franchisors.
It is important to note that these protections are generally tied to state franchise laws. The specific rights and remedies available to a Deer Solution franchisee may vary depending on the state in which they operate. Franchisees should consult with an attorney to understand their rights and obligations under the applicable state franchise law.