Under what circumstances does a franchisee's signed statement regarding the Deer Solution franchise relationship NOT waive 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, a signed statement, questionnaire, or acknowledgement by a franchisee related to the commencement of the franchise relationship does not waive claims under applicable state franchise law. This protection specifically includes claims related to fraud in the inducement. Additionally, franchisees cannot disclaim reliance on statements made by Deer Solution, its franchise sellers, or anyone acting on their behalf. This provision overrides any other conflicting terms within the franchise agreement.
This clause is included in the general Item 23 and is further reinforced by state-specific amendments for California, Illinois, Minnesota, North Dakota, Virginia, Hawaii, and New York. For example, California's Franchise Investment Law explicitly states that any provision requiring a franchisee to waive specific provisions of the law is against public policy and therefore void and unenforceable. Similarly, Illinois law voids any condition that would bind a person acquiring a franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois.
For prospective Deer Solution franchisees, this means that even if they sign documents that appear to waive their rights, those waivers may not be enforceable under state franchise laws. This provides an added layer of protection, ensuring that franchisees can still pursue claims related to fraud or misrepresentation, regardless of any signed agreements to the contrary. However, franchisees should be aware of the specific laws in their state and consult with an attorney to fully understand their rights.
It is important to note that while these protections exist, they are subject to jurisdictional requirements. For instance, the New York amendment specifies that each provision is effective only to the extent that the jurisdictional requirements of the New York General Business Law are met independently. Similarly, the North Dakota amendment states that its provisions are effective only if the jurisdictional requirements of North Dakota Law are met independently. Therefore, franchisees should verify that their specific circumstances meet these jurisdictional requirements to ensure the protections apply.