For Deka Lash, what is the effect of a statement, questionnaire, or acknowledgment signed by a franchisee regarding waiving claims under state franchise law?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
No statement, questionnaire, or acknowledgment 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 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, any statement, questionnaire, or acknowledgment signed by a franchisee at the start of the franchise relationship cannot waive claims under state franchise law. This includes claims related to fraud in the inducement or disclaiming reliance on statements made by Deka Lash or its representatives. This provision takes precedence over any conflicting terms in any document related to the franchise agreement. This protection is particularly emphasized in the context of franchise questionnaires and acknowledgments.
For prospective Deka Lash franchisees, this means that signing any document at the beginning of the franchise relationship that appears to waive your rights under state franchise law will not be legally binding. You retain the right to bring claims against Deka Lash for violations of state franchise law, including instances of fraud or misrepresentation. This safeguard is in place to protect franchisees from overreaching franchisors who might try to use such documents to limit their liability.
However, Deka Lash franchisees should be aware of the specific notices for California and Hawaii residents, stating that they may not execute the questionnaire. If they do, Deka Lash agrees not to use the questionnaire in any manner. Additionally, the closing acknowledgments should not be signed by residents of Maryland or if the franchise is to be operated in Maryland. Franchisees should always carefully review all documents and seek legal counsel to fully understand their rights and obligations under the franchise agreement and applicable state laws.