What action should a franchisee or developer take if any statement in the Devon Creek Acknowledgment Statement is incomplete or incorrect?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
Acknowledgement of the truthfulness of the statements below are an inducement for the Franchisor to enter into a Franchise Agreement (or Multi-Unit Development Agreement). Notify Franchisor immediately, prior to acknowledgment, if any statement below is incomplete or incorrect.
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee (or developer) 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 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
According to the 2024 Devon Creek Franchise Disclosure Document, a prospective franchisee or developer must notify Devon Creek immediately, before acknowledging the Acknowledgment Statement, if any statement within it is incomplete or incorrect. This Acknowledgment Statement confirms that the franchisee understands various aspects of the franchise agreement and the Franchise Disclosure Document (FDD).
This requirement ensures that both the franchisee and Devon Creek are aligned on the understanding of the franchise terms before the agreement is finalized. By promptly addressing any inaccuracies or omissions, potential misunderstandings or disputes can be avoided. This step is crucial, as the franchisee's acknowledgment of these statements serves as an inducement for Devon Creek to enter into the franchise agreement.
Furthermore, the FDD emphasizes that no statement signed by the franchisee can waive claims under state franchise law or disclaim reliance on statements made by Devon Creek. This provision protects the franchisee's rights and ensures that they are not bound by any acknowledgment that could compromise their legal standing. Franchisees should carefully review all statements in the Acknowledgment Statement and seek clarification on any points of concern before signing.