What effect does a statement, questionnaire, or acknowledgement signed by a Floyds 99 franchisee have on waiving claims under state franchise law?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
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ADDENDUM TO THE FLOYD'S 99 FRANCHISING, LLC DISCLOSURE DOCUMENT FOR THE STATE OF RHODE ISLAND
- The following paragraph is added at the end of Item 17:
Section 19-28.1-14 of the Rhode Island Franchise Investment Act provides that "A provision in a franchise agreement restricting jurisdiction or venue to a forum outside this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under this Act."
ADDENDUM TO THE FLOYD'S 99 FRANCHISING, LLC DISCLOSURE DOCUMENT FOR THE STATE OF VIRGINIA
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- Pursuant to Section 13.1-564 of the Virginia Retail Franchising Act, it is unlawful for a franchisor to cancel a franchise without reasonable cause. If any ground for default or termination stated in the franchise agreement does not constitute "reasonable cause," as that term may be defined in the Virginia Retail Franchising Act or the laws of Virginia, that provision may not be enforceable.
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- 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.
ADDENDUM TO THE FLOYD'S 99 FRANCHISING, LLC FRANCHISE DISCLOSURE DOCUMENT FOR THE STATE OF WASHINGTON
To the extent the Washington Franchise Investment Protection Act, Wash. Rev. Code §§19.100.010 – 19.100.940 applies, the terms of this Addendum apply.
Franchisees who receive financial incentives to refer franchise prospects to Franchisors may be required to register as franchise brokers under the laws of Washington State.
Use of Franchise Brokers. The franchisor may use the services of franchise brokers to assist it in selling franchises. A franchise broker represents the franchisor and is paid a fee for referring prospects to the franchisor and/or selling the franchise. Carefully evaluate any information provided by a franchise broker about a franchise. Do your own investigation by contacting the franchisor's current and former franchisees to ask them about their experience with the franchisor.
Item 17 d.
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, several states have addenda that address the effect of a franchisee signing a statement, questionnaire, or acknowledgement. For franchisees in Virginia, Maryland, Illinois and New York, no such document signed in connection with starting the franchise can waive claims under state franchise law, including claims of fraud. These addenda also state that these documents cannot disclaim reliance on statements made by Floyds 99 or anyone acting on their behalf. These provisions override any other terms in any document related to the franchise agreement.
For California franchisees, no disclaimer, questionnaire, clause, or statement signed by a franchisee related to the commencement of the franchise relationship can be interpreted as waiving any claim of fraud in the inducement, whether common law or statutory. It also cannot disclaim reliance on any statement or information provided by Floyds 99 or anyone acting on their behalf that was a material inducement to the franchisee's investment. Any statements signed by a franchisee to understand any fact or its legal effect are deemed to be based only on the franchisee's understanding of the law and facts at the time of the investment decision. This provision supersedes any other inconsistent term in any document executed for the franchise.
These stipulations protect franchisees by ensuring that they cannot unknowingly waive their rights under state franchise laws through standard documents or acknowledgements signed when starting the franchise. This is particularly important in preventing franchisors from using these documents to shield themselves from liability for misrepresentations or fraud. Prospective franchisees should carefully review the specific addenda for their state to understand the full scope of these protections and consult with an attorney to ensure their rights are fully protected.