Are there any representations that the Devon Creek Franchise Agreement does not disclaim?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
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 Devon Creek's 2024 Franchise Disclosure Document, the franchise agreement does not disclaim reliance on any statements made by the franchisor in the Franchise Disclosure Document (FDD). This means that Devon Creek franchisees can rely on the information provided in the FDD as being accurate and not disclaimed by the franchise agreement itself.
This is an important protection for franchisees, as the FDD contains critical information about the franchise system, including fees, obligations, and financial performance representations. If Devon Creek were to disclaim reliance on statements in the FDD, it would be difficult for a franchisee to hold the franchisor accountable for any misrepresentations or omissions.
Specifically, the acknowledgement signed by the franchisee cannot waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor or anyone acting on their behalf. This provision takes precedence over any other conflicting terms in any document executed in connection with the franchise agreement.