What is the effect of a franchisee disclaiming reliance on any statement made by Deer Solution Franchising LLC?
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 Deer Solution's 2025 Franchise Disclosure Document, a franchisee's attempt to disclaim reliance on statements made by Deer Solution, its franchise sellers, or anyone acting on its behalf, will not be enforced. This protection extends to claims under applicable state franchise laws, including fraud in the inducement. This means that even if a franchisee signs a document attempting to waive their right to hold Deer Solution accountable for statements made during the franchise sales process, that waiver will not be legally binding. This provision takes precedence over any conflicting terms in any document related to the franchise agreement. These stipulations are included in amendments to the franchise agreement for California, Hawaii, Maryland, Minnesota and New York.
This safeguard is particularly important for prospective franchisees as it ensures they can pursue legal recourse if they believe they were misled by Deer Solution during the franchise sales process. For example, if a franchise seller made exaggerated claims about potential profits or misrepresented the level of support provided, the franchisee would not be prevented from bringing a claim simply because they signed a document disclaiming reliance on such statements. This protection helps to balance the power dynamic between the franchisor and franchisee.
It is important to note that the specific protections afforded to franchisees may vary by state. For example, the California Franchise Investment Law explicitly prohibits a franchisor from disclaiming representations made to the franchisee or denying the franchisee's ability to rely on those representations. Similarly, the Wisconsin Fair Dealership Law may affect the termination provisions of the Franchise Agreement. Franchisees should consult with an attorney to understand their rights and obligations under the laws of their specific state.
In summary, Deer Solution franchisees are protected from unknowingly waiving their rights to hold the franchisor accountable for statements made during the franchise sales process. This provision strengthens the franchisee's position and promotes transparency and fairness in the franchise relationship. Prospective franchisees should carefully review the FDD and any state-specific amendments to fully understand their rights and protections.