In connection with the commencement of the Extreme Art Studio franchise relationship, what effect shall a statement, questionnaire, or acknowledgment signed by a franchisee have on waiving claims under state franchise law?

According to the 2024 Extreme Art Studio Franchise Disclosure Document, any statement, questionnaire, or acknowledgment signed by a franchisee at the start of the franchise relationship will not waive claims under state franchise law. This includes claims related to fraud in the inducement or disclaiming reliance on statements made by Extreme Art Studio or its representatives. This provision takes precedence over any conflicting terms in any document signed in connection with the franchise agreement. This protection is reiterated across multiple state-specific addenda within the FDD, including those for Ohio, Rhode Island, Maryland, Virginia, Washington and Wisconsin.

This means that even if an Extreme Art Studio franchisee signs a document that appears to waive their rights, that waiver will not be legally effective regarding state franchise law claims. Franchisees retain the right to pursue legal action under state franchise laws, regardless of any statements they may have signed. This is a significant protection for franchisees, ensuring they are not unknowingly giving up their legal rights.

This type of non-waiver provision is common in franchise agreements to protect franchisees, particularly in states with strong franchise laws. It aims to prevent franchisors from using complex legal language or pressure tactics to get franchisees to unknowingly surrender their rights. Prospective Extreme Art Studio franchisees should still carefully review all documents before signing, but can be assured that these clauses will not prevent them from pursuing legitimate claims under state law.