factual

What section of the Exit franchise agreement contains acknowledgements made by the franchisee?

Exit Franchise · 2025 FDD

Answer from 2025 FDD Document

43. STATEMENTS, QUESTIONNAIRES AND ACKNOWLEDGMENTS

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, Section 43 of the franchise agreement addresses statements, questionnaires, and acknowledgments signed by the franchisee. This section clarifies that no statement, questionnaire, or acknowledgment can waive claims under state franchise law, including fraud in the inducement. It also prevents disclaimers of reliance on statements made by Exit, franchise sellers, or anyone acting on Exit's behalf.

This provision is designed to protect the franchisee by ensuring that their rights under state franchise laws are not inadvertently waived through signed documents. It specifically addresses concerns about potential fraud or misrepresentation during the franchise sales process. The clause aims to prevent Exit from using franchisee acknowledgments to shield themselves from liability for misleading statements.

This section explicitly states that its terms supersede any conflicting terms in any document executed in connection with the franchise. This reinforces the importance of this provision in protecting the franchisee's rights and ensuring transparency in the franchise relationship. Prospective franchisees should carefully review this section to understand their rights and protections under the franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.