What effect do statements, questionnaires, or acknowledgements signed by a Deer Solution franchisee have on waiving claims under state franchise law?
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, several state-specific amendments clarify the impact of signed documents on franchisees' rights. Generally, no statement, questionnaire, or acknowledgement signed by a Deer Solution franchisee at the start of the franchise relationship can waive claims under applicable state franchise law. This includes claims related to fraud in the inducement or disclaiming reliance on statements made by Deer Solution or its representatives. This provision is designed to override any conflicting terms in other franchise documents, ensuring franchisees retain their legal rights.
For franchisees in California, the Franchise Investment Law explicitly states that any provision requiring a waiver of specific legal provisions is against public policy and unenforceable. Similarly, Deer Solution cannot disclaim or deny representations made to the franchisee. In Illinois, any provision designating jurisdiction and venue outside of Illinois is void, although arbitration outside the state may be permissible. Furthermore, any condition that binds a franchisee to waive compliance with the Illinois Franchise Disclosure Act or other Illinois laws is void.
In other states like North Dakota, provisions requiring a waiver of exemplary and punitive damages are unenforceable, and limitations on claims within one year are considered unfair. Maryland's amendment specifies that required general releases upon renewal, sale, or transfer do not apply to liabilities under the Maryland Franchise Registration and Disclosure Law, and franchisees can bring lawsuits in Maryland for claims arising under this law within three years of the franchise grant. These state-specific amendments collectively reinforce the protection of franchisees' rights, ensuring that signed documents do not inadvertently waive legal claims or protections provided by state laws.