factual

Does the Deer Solution franchise agreement allow a franchisee to disclaim reliance on statements made by the franchisor, franchise seller, or anyone acting on their behalf through any signed document related to the franchise commencement?

Deer_Solution Franchise · 2025 FDD

Answer 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, a franchisee cannot disclaim reliance on statements made by the franchisor, franchise seller, or anyone acting on their behalf in any signed document related to the commencement of the franchise relationship. This protection is in place to prevent franchisees from inadvertently waiving their rights based on misrepresentations or false statements made during the franchise sales process. This provision applies universally and supersedes any conflicting terms in any document executed in connection with the franchise agreement. This ensures that franchisees retain their legal recourse should they be misled.

This clause is particularly important because it addresses potential power imbalances between the franchisor and franchisee. Without this protection, a franchisor could potentially make misleading claims to induce a franchisee to sign the agreement, then later argue that the franchisee waived their right to rely on those claims. By preventing such disclaimers, Deer Solution aims to foster a more transparent and equitable relationship with its franchisees.

Several state-specific amendments reinforce this protection, including those for California, Connecticut, Illinois, Hawaii, Minnesota, and North Dakota. These amendments emphasize that no statement, questionnaire, or acknowledgment signed by the franchisee can waive claims under applicable state franchise laws, including fraud in the inducement, or disclaim reliance on statements made by the franchisor or its representatives. This consistent application across multiple states suggests a strong commitment by Deer Solution to protect franchisees' rights and ensure fair dealing in the franchise relationship.

Prospective Deer Solution franchisees should be aware of this provision as it offers a degree of security against potential misrepresentations during the franchise sales process. It is advisable for franchisees to still conduct thorough due diligence and seek independent legal and financial advice before signing the franchise agreement. This clause does not replace the need for careful investigation but rather provides an additional layer of protection for the franchisee.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.