Can a Floyds 99 franchisee disclaim reliance on any statement made by the franchisor or their representatives?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
hise 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. | | IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this Illinois Rider | | concurrently with the execution of the Franchise Agreement on the day and year first above written. | | FLOYD'S 99 FRANCHISING, LLC | | FRANCHISEE (Print Name) | | By: | | By: |
Title:
Title:
ADDENDUM TO THE FLOYD'S 99 FRANCHISING, LLC FRANCHISE DISCLOSURE DOCUMENT FOR THE STATE OF INDIANA
Indiana law prohibits us from establishing a company-owned Shop within a reasonable area of your Franchised Location which would compete unfairly with you.
In Items 17.c. and 17.m., any releases you sign will not apply to any claims that may arise under the Indiana Franchise Disclosure Law and the Indiana Deceptive Practices Act.
Item 17.r. may not be enforceable under the Indiana Deceptive Practices Act.
Item 17.w. Indiana franchise laws apply even though Colorado law applies generally.
ADDENDUM TO THE FLOYD'S 99 FRANCHISING, LLC FRANCHISE DISCLOSURE DOCUMENT FOR THE STATE OF MARYLAND
The following provisions apply to all Franchises offered and sold to residents of the State of Maryland and Franchises to be operated in the State of Maryland:
Item 17 is amended as follows:
- a. The Franchise Agreement provides for termination upon bankruptcy. This provision may not be enforceable under federal bankruptcy law (11 U.S.C.A. §§ 101 et seq.).
- b. Pursuant to the Code of Maryland Regulations (COMAR) 02.02.08.16L, the general release required as a condition of renewal, sale and/or assignment/transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
- c. You may bring any cause of action against us in any court of competent jurisdiction, including the state or federal courts of Maryland.
- d. Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise.
The following statement is added to the Franchise Disclosure Document:
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.
RIDER TO THE FLOYD'S 99 FRANCHISING, LLC DEVELOPMENT AGREEMENT FOR THE STATE OF MARYLAND
| Developer is dated, 20 | This Rider to the Development Agreement by and between Floyd's 99 Franchising, LLC and | ||
|---|---|---|---|
| 1. | The following statement is added at the end of Section 8.2.f: | ||
| apply to any liability under the Maryland Franchise Registration and Disclosure Law. | Pursuant to the Code of Maryland Regulations (COMAR) 02.02.08.16L, the | ||
| general release required as a condition of renewal, sale and/or assignment/transfer shall not | |||
| 2. | The following statement is added at the end of Section 13.4: | ||
| within three years after the grant of the franchise. |
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 or its representatives is subject to certain state laws. Specifically, addenda for Maryland, New York, Illinois, and Virginia state that no statement, questionnaire, or acknowledgment signed by a franchisee in connection with starting the franchise can waive claims under applicable state franchise law. This includes claims related to fraud in the inducement or disclaiming reliance on statements made by the franchisor or its representatives. These provisions override any conflicting terms in other documents related to the franchise agreement.
This means that in Maryland, New York, Illinois, and Virginia, a Floyds 99 franchisee cannot be forced to sign away their right to claim they relied on statements made by the franchisor, especially if those statements turn out to be fraudulent or misleading. This protection is particularly important because it prevents Floyds 99 from using standardized documents to shield themselves from liability for misrepresentations made during the franchise sales process.
For prospective Floyds 99 franchisees in these states, this addendum provides an additional layer of legal protection. It ensures that they can hold the franchisor accountable for their statements and representations, which is a crucial safeguard during the initial stages of the franchise relationship. Franchisees should consult with a legal professional to fully understand their rights and protections under state law.