What effect do statements, questionnaires, or acknowledgements signed by Face Foundrie franchisees have on waiving claims under state franchise law or disclaiming reliance on statements made by the franchisor?

According to Face Foundrie's 2025 Franchise Disclosure Document, certain states have specific addenda that protect franchisees from unintentionally waiving their rights. For franchisees operating in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin, any statement, questionnaire, or acknowledgment signed in connection with starting the franchise will not waive claims under state franchise law, including claims of fraud. These documents also cannot disclaim reliance on statements made by Face Foundrie or anyone acting on their behalf. This protection supersedes any conflicting terms in other franchise documents.

In California, the Franchise Investment Law reinforces this protection by stating that any provision requiring a franchisee to waive specific provisions of the law is against public policy and therefore void. The law also prevents Face Foundrie from denying representations made to the franchisee, denying the franchisee's ability to rely on those representations, or denying any violations of the law.

Similarly, Minnesota law ensures that franchisees cannot be forced to agree to a general release that would waive their rights under the Minnesota Franchise Law as a condition of renewal or transfer. Furthermore, Minnesota law prohibits Face Foundrie from requiring litigation to occur outside of Minnesota or from diminishing any rights, procedures, forums, or remedies available to the franchisee under Minnesota law. These state-specific addenda aim to protect franchisees from unknowingly relinquishing their legal rights or remedies during the franchise relationship.