Can a Floyds 99 franchisee disclaim reliance on any statement made by the franchisor?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
ing given them in the Franchise Agreement.
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- Except as expressly modified by this Rider, the Franchise Agreement remains unmodified and in full force and effect.
This Rider is being entered into in connection with the Franchise Agreement. In the event of any conflict between this Rider and the Franchise Agreement, the terms and conditions of this Rider shall apply.
IN WITNESS WHEREOF, the undersigned have executed this Rider as of the date of the Franchise Agreement.
| FLOYD'S 99 FRANCHISING, LLC | |
|---|---|
| FRANCHISEE (Print Name) | |
| By: | By: |
| Title: | Title: |
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. and u.:
Items 17 d. and u. in "The Franchise Relationship" table and "The Developer Relationship" table are replaced with the following:
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| d. | Termination by franchisee | Not Applicable | Not Applicable (subject to state law) |
| u. |
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the ability of a franchisee to disclaim reliance on statements made by the franchisor is restricted in several states. Specifically, addenda for Virginia, New York, Maryland, Illinois, and California state that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor or their representatives. These provisions override any conflicting terms in other franchise documents.
This means that in these states, a Floyds 99 franchisee cannot legally waive their right to pursue claims against the franchisor based on misrepresentations or fraudulent statements made during the franchise sales process. This protection extends to reliance on information provided by the franchisor, franchise sellers, or anyone acting on their behalf.
For prospective Floyds 99 franchisees in these states, this is a significant safeguard. It ensures that they retain the right to hold the franchisor accountable for any misleading or false statements that induced them to invest in the franchise. It is important for franchisees to be aware of these state-specific protections, as they supersede any general waivers or disclaimers that may be included in the franchise agreement. Franchisees should consult with an attorney to fully understand their rights under state franchise laws.