What effect does a statement, questionnaire, or acknowledgement signed by a franchisee have on waiving claims under state franchise law or disclaiming reliance on statements made by the franchisor for Deer Solution?
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 statement, questionnaire, or acknowledgement signed by a franchisee in connection with starting the franchise relationship does not waive claims under state franchise law, including fraud in the inducement. Nor does it disclaim reliance on any statement made by Deer Solution, franchise sellers, or anyone acting on behalf of Deer Solution. This rule overrides any other conflicting terms in any document related to the franchise agreement. This protection is further reinforced by state-specific amendments in California, Hawaii, New York, North Dakota, and Virginia. These amendments ensure that franchisees' rights under state laws are not undermined by standard contract clauses.
This provision is highly favorable for prospective Deer Solution franchisees. It prevents Deer Solution from using standardized forms to circumvent state franchise laws or escape liability for misrepresentations made during the sales process. Franchisees retain their legal rights and ability to pursue claims, even if they have signed documents that appear to limit those rights. This protection is especially important in states with strong franchise laws designed to protect franchisees from overreaching by franchisors.
However, the FDD also notes some nuances and limitations. For example, the New York amendment specifies that its provisions are effective only if the jurisdictional requirements of New York General Business Law are met independently, without relying on the amendment itself. Similarly, the North Dakota amendment states that its provisions are effective only to the extent that the jurisdictional requirements of North Dakota Law are met independently. This means that franchisees need to ensure they meet the specific legal requirements of their state to fully benefit from these protections.
In summary, while Deer Solution's FDD provides strong protections against waivers of state franchise law and disclaimers of reliance, franchisees should still consult with legal counsel to understand the specific requirements and limitations in their state. This will ensure they can fully exercise their rights and remedies under the franchise agreement and applicable state laws.