For Deer Solution franchisees, what is the effect of a statement, questionnaire, or acknowledgement signed in connection with the commencement of the franchise relationship regarding 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 the 2025 Deer Solution Franchise Disclosure Document, any statement, questionnaire, or acknowledgement signed by a franchisee at the start of their franchise relationship cannot waive claims under state franchise law. This includes claims related to fraud in the inducement. Furthermore, franchisees cannot disclaim reliance on statements made by Deer Solution, its sellers, or anyone acting on their behalf. This protection is designed to ensure franchisees retain their legal rights despite any agreements they may sign. This provision overrides any conflicting terms in any document associated with the franchise agreement.
This safeguard is reinforced by state-specific amendments included in the FDD for franchisees in California, New York, Minnesota, Hawaii, Illinois, Virginia, and North Dakota. For example, California's Franchise Investment Law explicitly voids any provision requiring a franchisee to waive specific legal protections. Similarly, North Dakota law deems limitations of claims within one year as unfair and unenforceable, ensuring the state's statute of limitations applies to Deer Solution franchisees in that state. These state-specific amendments highlight the importance of understanding the legal protections available in the franchisee's specific location.
For prospective Deer Solution franchisees, this means that signing a document at the beginning of the franchise relationship does not automatically mean they have waived their rights to pursue legal claims under state franchise laws. This protection extends to instances of fraud or misrepresentation by the franchisor. Franchisees should still carefully review all documents before signing and consult with an attorney to fully understand their rights and obligations under both the franchise agreement and applicable state laws.