For Dryject franchises subject to state franchise registration/disclosure laws, does the franchise agreement supersede any other document regarding waiving claims or disclaiming reliance on franchisor statements?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
The following provision applies only to franchisees and franchises that are subject to state 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.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, for franchises subject to state franchise registration/disclosure laws in specific states, a particular provision takes precedence over all other documents regarding waivers of claims or disclaimers of reliance on statements made by Dryject. This provision ensures that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under applicable state franchise law, including claims of fraud, or disclaim reliance on statements made by Dryject or its representatives.
This protection applies specifically to franchisees and franchises located in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin. The inclusion of this clause is designed to protect franchisees in these states from unknowingly or unintentionally relinquishing their legal rights.
For a prospective Dryject franchisee, this means that any document they sign during the commencement of their franchise relationship cannot be used to invalidate their right to pursue claims against the franchisor under state franchise laws. This offers a degree of security, ensuring that franchisees can rely on the representations made by Dryject and that they have recourse if those representations prove to be false or misleading. This type of clause is not uncommon in franchise agreements, particularly in states with strong franchise protection laws, as it aims to balance the power dynamic between franchisor and franchisee.