What is the specific effect of the statement added to the Floyds 99 Franchise Disclosure Document on a franchisee's ability to claim fraud in the inducement?

According to the 2025 Floyds 99 Franchise Disclosure Document, addenda for the states of Illinois, Maryland, and Virginia include specific provisions that protect a franchisee's right to pursue claims of fraud in the inducement. These addenda state that no document signed by a franchisee at the start of the franchise relationship can waive their right to make claims under state franchise law, including claims of fraud in the inducement. This also means franchisees cannot disclaim reliance on statements made by Floyds 99 or its representatives.

This protection is significant because it prevents Floyds 99 from using standard contract clauses to shield itself from liability for misrepresentations made during the franchise sales process. Typically, franchise agreements include clauses where the franchisee acknowledges they are not relying on any promises or representations outside the written agreement. However, in Illinois, Maryland, and Virginia, these clauses are superseded by the addendum, allowing franchisees to argue they were induced into signing the agreement based on fraudulent statements.

The addenda explicitly state that these provisions override any other terms in any document related to the franchise agreement. This ensures that franchisees in these states retain their legal rights to claim fraud in the inducement, regardless of what other documents they may have signed. This protection is particularly important because proving fraud can be difficult, and these provisions remove a common legal hurdle that franchisors often use to defend against such claims.