Is the Exit FDD receipt acknowledgement considered a binding agreement?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
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 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, any statements, questionnaires, or acknowledgments signed by a franchisee related to the franchise commencement do not waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on franchisor statements. This provision takes precedence over any conflicting terms in any document executed during the franchise agreement.
This means that while franchisees may be asked to sign acknowledgements or questionnaires, these documents do not prevent them from pursuing legal claims related to the franchise agreement. This protects the franchisee from unintentionally waiving their rights through routine paperwork.
This clause ensures that franchisees retain their legal rights and protections under applicable state franchise laws, regardless of any statements or acknowledgments they may sign. It is a safeguard against potential overreach by the franchisor and ensures that franchisees can seek legal recourse if they believe they have been misled or defrauded.