Does the Deer Solution franchise agreement allow franchisees to disclaim reliance on statements made by the franchisor or its representatives?
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 franchise agreement does not allow franchisees to disclaim reliance on statements made by Deer Solution or its representatives. Specifically, amendments to the franchise agreement for California, Wisconsin, New York, Illinois, Minnesota, and Hawaii state 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 its representatives. This provision supersedes any other term in the franchise agreement.
This means that prospective Deer Solution franchisees are protected from being bound by any agreement that would prevent them from claiming they relied on statements made by Deer Solution during the franchise sales process. This protection extends to claims of fraud in the inducement, which occur when a franchisee believes they were misled into signing the agreement based on false representations.
This clause is particularly important because it prevents Deer Solution from using standardized documents to shield itself from liability for misrepresentations made to franchisees. It ensures that franchisees retain their legal rights to pursue claims against the franchisor if they believe they were deceived. This is a beneficial term for franchisees, as it provides an additional layer of protection and recourse in case of disputes or misrepresentations made during the franchise sales process.