Can a franchisee claim reliance on representations about advertising support from Desi District that are not in the Disclosure Document?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
By signing this Agreement, Franchisee acknowledges the following:
- (6) That no person acting on Desi District Franchise Group's behalf made any statement or promise or agreement, other than those matters addressed in this Agreement, concerning advertising, marketing, media support, market penetration, training, support service, or assistance that is contrary to, or different from, the information contained in the Disclosure Document.
- (7) Franchisee understands that this Agreement contains the entire agreement between Desi District Franchise Group and Franchisee concerning the Desi District franchise, which means that any oral or written statements not set out in this
Agreement will not be binding. In deciding to enter into this Agreement, Franchisee is not relying on any statement, promise, claim, or representation not expressly set forth in this Agreement or in the Disclosure Document.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, a franchisee cannot claim reliance on any representations about advertising, marketing, or media support that are not explicitly stated in the Franchise Disclosure Document (FDD) or the franchise agreement. This is because the franchise agreement contains an integration clause, stating that the written agreement represents the entire agreement between the franchisee and Desi District.
Desi District's FDD emphasizes that no person acting on behalf of Desi District is authorized to make any statements or promises regarding advertising, marketing, media support, or assistance that contradict or differ from the information provided in the FDD. This provision aims to prevent misunderstandings or misinterpretations of the support a franchisee can expect. It also ensures that all franchisees receive a consistent message about the brand's advertising and marketing strategies.
This stipulation protects Desi District from potential legal disputes arising from alleged verbal promises or representations made during the franchise sales process. It also reinforces the importance of prospective franchisees carefully reviewing the FDD and franchise agreement to understand the full scope of advertising and marketing support they will receive. Any promises or guarantees not documented in these official documents are not binding on Desi District. Therefore, it is crucial for potential franchisees to seek clarification on any advertising-related questions and ensure that all agreed-upon terms are included in the final agreement.