Can a Floyds 99 franchisee disclaim reliance on statements made by the franchisor?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
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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.
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 subject to state-specific laws. In several states, including Virginia, New York, Maryland, California, and Illinois, the FDD includes addenda that directly address this issue. These addenda generally 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 are designed to protect franchisees from unknowingly giving up their legal rights. These clauses override any other conflicting terms in documents related to the franchise agreement.
For a prospective Floyds 99 franchisee, this means that in the aforementioned states, they cannot be forced to sign away their right to claim they relied on the franchisor's statements, especially if those statements turn out to be fraudulent or misleading. This protection is significant because it allows franchisees to hold the franchisor accountable for the information they provide during the franchise sales process. It ensures that franchisees can seek legal recourse if they believe they were induced into the agreement based on false pretenses or misrepresentations.
However, it's important to note that these protections are state-specific. In states without such explicit provisions in the FDD addenda, the enforceability of disclaimers may vary. Franchisees should consult with legal counsel to understand their rights and obligations in their specific state. The presence of these clauses in some states but not others highlights the importance of carefully reviewing the FDD and any state-specific addenda before signing a franchise agreement with Floyds 99.
In summary, while Floyds 99's franchise agreement might contain language that appears to disclaim reliance on franchisor statements, these disclaimers are unenforceable in certain states like Virginia, New York, Maryland, California, and Illinois due to specific state laws and addenda to the franchise agreement. This ensures that franchisees in those states retain their right to pursue claims based on reliance on the franchisor's representations.