In states with franchise registration/disclosure laws, can a Dryject franchisee waive claims under applicable state franchise law?

According to Dryject's 2025 Franchise Disclosure Document, the franchise agreement includes provisions that address the waiver of claims under state franchise laws, particularly in states with franchise registration and disclosure laws. Generally, Dryject franchisees cannot waive claims under applicable state franchise law. This protection is explicitly stated in addenda for several states, including Illinois, Indiana, Maryland, Minnesota, California, and Hawaii. These addenda clarify that any statement, questionnaire, or acknowledgment signed by a franchisee cannot waive claims under state franchise law, including claims of fraud in the inducement. This ensures that franchisees retain their legal rights and protections under state laws, regardless of any agreements made during the commencement of the franchise relationship. These provisions are designed to supersede any conflicting terms in other documents executed in connection with the franchise agreement.

For franchisees in Illinois, the FDD states that any condition, stipulation, or provision requiring a franchisee to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void. Similarly, Indiana's addendum specifies that any provision binding a person to waive compliance with Indiana's franchise laws is also void, particularly concerning general releases upon renewal or transfer of the franchise. In Maryland, the FDD is amended to ensure that franchisees can bring lawsuits in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, and that they cannot waive these rights. Minnesota rules also prevent Dryject from requiring litigation outside of Minnesota or requiring waiver of a jury trial.

California's Franchise Investment Law also prohibits Dryject from including provisions that require franchisees to waive specific provisions of the law or disclaim reliance on representations made by the franchisor. The addendum for Hawaii states that the franchise has been filed under the Franchise Investment Law of the state, although it clarifies that filing does not constitute approval, recommendation, or endorsement by the director of commerce. These state-specific addenda collectively reinforce the principle that franchisees cannot waive their rights under state franchise laws, safeguarding their ability to pursue legal claims and remedies.

These protections are typical in franchise agreements to ensure fairness and compliance with state regulations designed to protect franchisees. Prospective Dryject franchisees should carefully review the addenda specific to their state of residence or the location of their franchise to fully understand their rights and limitations. It is also advisable to consult with a legal professional to ensure a comprehensive understanding of their rights and obligations under the franchise agreement and applicable state laws.