Are there any specific statements that Exit prohibits including in the FDD receipt acknowledgement?
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 statement, questionnaire, or acknowledgment signed or agreed to by a franchisee regarding the commencement of their franchise relationship cannot waive claims under state franchise law, including claims of fraud.
Additionally, these documents cannot disclaim reliance on any statement made by Exit, franchise sellers, or individuals acting on Exit's behalf. This specific provision takes precedence over any other conflicting terms in documents related to the franchise agreement.
This means that Exit franchisees retain their legal rights and protections under state franchise laws, and any attempt to waive these rights through acknowledgments or questionnaires is invalid. Franchisees are also protected from claims that they did not rely on statements made by Exit during the franchise sales process.