Are representations made by Floyds 99 in the franchise disclosure document disclaimed by the agreement?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
No disclaimer, questionnaire, clause, or statement signed by a franchisee in connection with the commencement of the franchise relationship shall be construed or interpreted as waiving any claim of fraud in the inducement, whether common law or statutory, or as disclaiming reliance on or the right to rely upon any statement made or information provided by any franchisor, broker or other person acting on behalf of the franchisor that was a material inducement to a franchisee's investment. Any statements or representations signed by a franchisee purporting to understand any fact or its legal effect shall be deemed made only based upon the franchisee's understanding of the law and facts as of the time of the franchisee's investment decision. This provision supersedes any other or inconsistent term of any document executed in connection with the franchise.
ADDENDUM TO THE FLOYD'S 99 FRANCHISING, LLC DISCLOSURE DOCUMENT FOR THE STATE OF HAWAII
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, certain statements, questionnaires, or acknowledgments signed by a franchisee will not waive claims under applicable state franchise law, including fraud in the inducement. Nor will they disclaim reliance on statements made by Floyds 99, its sellers, or representatives. This protection is specifically highlighted in addenda for Maryland and Virginia, and these provisions override any conflicting terms in other documents related to the franchise agreement. This ensures that franchisees in these states retain their rights to pursue claims based on misrepresentations or fraud, despite any waivers they might have signed.
For prospective franchisees in California, the FDD states that no disclaimer, questionnaire, clause, or statement signed by a franchisee can be interpreted as waiving claims of fraud or disclaiming reliance on statements made by Floyds 99 or its representatives that induced the franchisee's investment. Any statements signed by a franchisee regarding their understanding of facts or legal effects are deemed based on their understanding at the time of the investment decision. This provision takes precedence over any other inconsistent terms in franchise-related documents, offering franchisees a degree of protection against unknowingly waiving their rights.
In Indiana, any releases signed by the franchisee will not apply to claims arising under the Indiana Franchise Disclosure Law and the Indiana Deceptive Practices Act. This ensures that franchisees in Indiana retain their rights and protections under these specific state laws, regardless of any general releases they might sign as part of the franchise agreement. These state-specific addenda collectively reinforce the principle that franchisees' rights and protections under state laws cannot be easily waived or disclaimed through standard contractual language.