In which states does the 'No Waiver or Disclaimer of Reliance' provision apply to Face Foundrie franchisees?
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 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION OF THE FRANCHISE RELATIONSHIP (FDD pages 51–59)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the 'No Waiver or Disclaimer of Reliance' provision applies to franchisees and franchises subject to franchise registration/disclosure laws in specific states. This provision ensures that franchisees in these states cannot waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Face Foundrie or its representatives. This protection supersedes any conflicting terms in franchise documents.
The states where this provision is applicable are California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. This means that if a Face Foundrie franchisee operates in any of these states, they retain their rights under state franchise laws and can rely on the franchisor's representations without fear of those rights being waived by any agreement they signed.
For a prospective Face Foundrie franchisee, this is a significant protection. It prevents Face Foundrie from enforcing waivers or disclaimers that could limit the franchisee's legal recourse in case of misrepresentation or fraud. This provision offers an additional layer of security, ensuring that franchisees in these states have stronger legal standing in their relationship with Face Foundrie.