If the offer or sale of a Face Foundrie franchise is subject to franchise registration/disclosure laws in California, should the Franchisee Acknowledgement be signed?

According to Face Foundrie's 2025 Franchise Disclosure Document, if the offer or sale of the franchise is subject to franchise registration/disclosure laws in California, the Franchisee Acknowledgement should not be signed. The document explicitly states that it should not be signed, and will not apply, under these conditions. This requirement also applies to franchisees in Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin.

This instruction is crucial for prospective franchisees in those states because signing the acknowledgement when it's not applicable could potentially create legal complications or misunderstandings regarding the franchisee's rights and obligations. The Franchisee Acknowledgement aims to confirm that the franchisee has not relied on unauthorized promises or misrepresentations and has been properly represented in the transaction.

By explicitly stating that the acknowledgement should not be signed in states with franchise registration/disclosure laws, Face Foundrie aims to ensure compliance with state-specific regulations and protect the franchisee's rights under those laws. Franchisees should carefully adhere to this instruction and seek legal counsel if they have any questions or concerns about whether to sign the acknowledgement.