Does the Dermani Medspa Area Development Agreement disclaim any representations made in the Franchise Disclosure Document?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
The following statement shall be deemed to amend the Area Development Agreement, and the Franchisee Compliance Certification attached to the dermani MEDSPA FDD at Exhibit M:
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 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to the 2025 Dermani Medspa Franchise Disclosure Document, the Area Development Agreement does not allow for a waiver of any claims under applicable state franchise law, including fraud in the inducement, or disclaiming reliance on any statement made by the franchisor or anyone acting on their behalf. This is clarified through an addendum that supersedes any conflicting terms in the Area Development Agreement. This protection extends to franchisees in general, not just those signing a standard Franchise Agreement.
Specifically, the Illinois Addendum to the Area Development Agreement reinforces this protection by stating that any provision in the agreement that requires waiving compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void. This ensures that developers in Illinois retain their rights and protections under state law, regardless of any potentially conflicting terms in the Area Development Agreement.
Similarly, the Maryland Addendum to the Franchise Agreement ensures that no representations within the agreement act as a release, estoppel, or waiver of liability under the Maryland Franchise Registration and Disclosure Law. It also confirms the franchisee's right to bring lawsuits in Maryland for claims arising under this law and maintains a three-year statute of limitations for such claims. These addenda collectively strengthen franchisee rights by preventing the Area Development Agreement from inadvertently limiting legal protections or disclaiming reliance on franchisor statements.