factual

Can a Fat Shack franchisee in Washington disclaim reliance on statements made by the franchisor or its representatives?

Fat_Shack Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. Questionnaires and Acknowledgments. No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee 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 any franchisor, franchise seller, or other person acting on behalf of the franchisor.

This provision supersedes any other term of any document executed in connection with the franchise.

Source: Item 23 — Receipts (FDD pages 53–223)

What This Means (2025 FDD)

According to Fat Shack's 2025 Franchise Disclosure Document, if you are a franchisee in Washington, you cannot disclaim reliance on statements made by Fat Shack or its representatives. Specifically, any statement, questionnaire, or acknowledgment signed by a franchisee regarding the franchise relationship cannot waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor or its representatives. This protection is built into the franchise agreement to protect franchisees.

This means that any attempt by Fat Shack to include language in the franchise agreement that would prevent a franchisee from claiming they relied on statements made by Fat Shack is void and unenforceable in Washington. This provision is designed to protect franchisees from potentially misleading or fraudulent statements made during the franchise sales process. It ensures that franchisees can hold Fat Shack accountable for the representations they make.

This protection supersedes any other conflicting terms in any document executed in connection with the franchise. This strengthens the franchisee's position by ensuring that this specific protection against disclaiming reliance takes precedence over any other clauses that might attempt to limit it. This is a significant benefit for prospective franchisees in Washington, as it provides an additional layer of legal protection during the franchise relationship.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.