For the Face Foundrie Area Development Agreement, which states are the Franchisee Acknowledgement exhibits not applicable in?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
The following provision applies only to franchisees and franchises that are subject to the state franchise registration/disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin:
No statement, questionnaire, or acknowledgement signed or agreed to by you 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 us, any franchise seller, or any other person acting on our behalf. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — RECEIPTS (FDD pages 74–257)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, a specific provision regarding waiver or disclaimer of reliance does not apply in certain states. This provision is relevant to franchisees and franchises subject to state franchise registration/disclosure laws.
Specifically, the provision ensures that no statement, questionnaire, or acknowledgment signed by the franchisee can waive claims under state franchise law, including fraud in the inducement. It also prevents disclaimers of reliance on statements made by Face Foundrie, franchise sellers, or anyone acting on their behalf. This clause supersedes any conflicting terms in documents related to the franchise agreement.
The states where this provision applies are California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin. Therefore, in any state not listed, the franchisee acknowledgement exhibits would be applicable.