Does the Dryject franchise agreement disclaim any representations made in the Franchise Disclosure Document furnished to the franchisee?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
Any provision of a franchise agreement, franchise disclosure document, acknowledgement, questionnaire, or other writing, including any exhibit thereto, disclaiming or denying any of the following shall be deemed contrary to public policy and shall be void and unenforceable:
- (a) Representations made by the franchisor or its personnel or agents to a prospective franchisee.
- (b) Reliance by a franchisee on any representations made by the franchisor or its personnel or agents.
- (c) Reliance by a franchisee on the franchise disclosure document, including any exhibit thereto.
- (d) Violations of any provision of this division.
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
California's Franchise Investment Law (Corporations Code sections 31512 and 31512.1) states that any provision of a franchise agreement or related document requiring the franchisee to waive specific provisions of the law is contrary to public policy and is void and unenforceable. The law also prohibits a franchisor from disclaiming or denying (i) representations it, its employees, or its agents make to you, (ii) your ability to rely on any representations it makes to you, or (iii) any violations of the law.
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 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, the franchise agreement does not allow for disclaimers of representations made in the Franchise Disclosure Document (FDD). Specifically, any provision in the franchise agreement that attempts to disclaim or deny representations made by Dryject or its agents to a prospective franchisee, or that denies a franchisee's reliance on those representations or the FDD itself, is considered against public policy and therefore void and unenforceable. This protects franchisees from being bound by disclaimers that would negate the information provided to them during the franchise sales process.
This protection extends to statements, questionnaires, or acknowledgments signed by the franchisee. These documents cannot waive claims under state franchise laws, including claims of fraud, or disclaim reliance on statements made by Dryject or its representatives. This ensures that franchisees retain their legal rights and recourse based on the information presented to them.
Several states, including California, Maryland, Minnesota and Wisconsin, have specific regulations reinforcing this protection. For example, California's Franchise Investment Law prohibits franchisors from disclaiming representations made to franchisees. Similarly, Maryland law requires franchisors to consent to be sued in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. Minnesota defers initial fees and payments until Dryject fulfills its pre-opening obligations and the franchise is open for business. Wisconsin ensures that the franchisee receives the disclosure document at least seven days prior to signing any agreement or making any payment.
These provisions collectively aim to ensure that prospective Dryject franchisees can rely on the information provided by Dryject and in the FDD, without fear of those representations being disclaimed or nullified by other contractual terms. This promotes transparency and fairness in the franchising process, giving franchisees greater confidence in their investment decision.