Does the Dryject franchise agreement allow franchisees to disclaim reliance on statements made by the franchisor or its representatives in questionnaires or acknowledgments?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
e franchise registration/disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin:**
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.
57. EFFECTIVE DATE
This Agreement shall not be effective until accepted by Us as evidenced by signing by an authorized Managing Member of Franchisor.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 Dryject FDD, the franchise agreement does not allow franchisees to disclaim reliance on statements made by Dryject or its representatives. Specifically, the FDD states that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law, including fraud, or disclaim reliance on statements made by Dryject or its representatives. This provision overrides any conflicting terms in other documents related to the franchise agreement. This protection is further reinforced by specific state laws, such as those in California, which prohibit Dryject from disclaiming representations made to franchisees or denying a franchisee's reliance on those representations.
This means that a Dryject franchisee cannot be forced to sign away their right to hold Dryject accountable for statements made during the franchise sales process. This is a significant protection for franchisees, as it ensures they can rely on the information provided by Dryject when making their investment decision. It prevents Dryject from using fine print or disclaimers to avoid responsibility for potentially misleading or inaccurate statements.
However, it's important to note that these protections are often tied to specific state laws. For example, the FDD includes addenda for states like Illinois, Indiana, Maryland, and New York, which address specific provisions of their franchise laws. Franchisees should carefully review the addenda applicable to their state to understand the full scope of their rights and protections. While Dryject cannot enforce waivers that violate state franchise laws, franchisees still bear the responsibility of conducting thorough due diligence and seeking legal advice to fully understand the franchise agreement and any related documents.
In summary, the Dryject franchise agreement, as outlined in the 2025 FDD, aims to protect franchisees from unknowingly waiving their rights to rely on statements made by Dryject. This is a positive aspect for prospective franchisees, as it promotes transparency and accountability in the franchise relationship. However, franchisees must remain vigilant and informed about their rights under both the franchise agreement and applicable state laws.