Does California law allow Fitstop to disclaim violations of the law?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
r franchise. California Corporations Code Section 31512 voids a waiver of your rights under the Franchise Investment Law (California Corporations Code Sections 31000 through 31516). Business and Professions Code Section 20010 voids a waiver of your rights under the Franchise Relations Act (Business and Professions Code Sections 20000 through 20043).
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- California Corporations Code section 31512.1 prohibits a franchisor from disclaiming or denying representations made by the franchisor or its agents to a prospective franchisee or a franchisee's reliance on these representations, or disclaiming violations under the law, in any franchise disclosure document, franchise agreement, or related document. If the Franchise Disclosure Document, Franchise Agreement, or any related document or exhibit contains a provision that is inconsistent with the law, the law will control.
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- California Corporations Code, Section 31125 requires us to give you a disclosure document, approved by the Department of Financial Protection and Innovation before we ask you to consider a material modification of your Franchise Agreement.
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Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, California law does not allow Fitstop to disclaim violations of the law. Specifically, California Corporations Code section 31512.1 prohibits Fitstop from disclaiming or denying representations made by Fitstop or its agents to a prospective franchisee, or a franchisee's reliance on these representations, or disclaiming violations under the law, in any franchise disclosure document, franchise agreement, or related document.
This means that any provision in the Fitstop Franchise Disclosure Document, Franchise Agreement, or related documents that is inconsistent with California law will be superseded by the law. This protects franchisees in California from unknowingly waiving their rights or being subjected to disclaimers that are not legally enforceable in the state.
Furthermore, California's Franchise Investment Law (Corporations Code sections 31512 and 31512.1) explicitly states that any provision requiring the franchisee to waive specific provisions of the law is against public policy and therefore void and unenforceable. The law also prevents Fitstop from disclaiming or denying representations made by them or their agents, or the franchisee's ability to rely on those representations, or any violations of the law. This ensures that franchisees' rights and protections under California law are upheld and cannot be undermined by contractual clauses.