Can a Fly Fitness franchisee disclaim reliance on statements made by the franchisor or their representatives?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee (or developer) 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 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, a franchisee cannot disclaim reliance on statements made by Fly Fitness or individuals acting on their behalf. Specifically, the Fly Fitness Acknowledgement Statement included in the franchise agreement states that no signed statement can waive claims under state franchise law, including fraud, or disclaim reliance on franchisor statements. This provision takes precedence over any conflicting terms in other documents related to the franchise agreement.
This means that a Fly Fitness franchisee retains the right to pursue legal action if they believe they were misled by statements made by Fly Fitness during the franchise sales process. This protection is particularly important in franchising, where prospective franchisees often rely heavily on information provided by the franchisor when making their investment decision. The acknowledgement aims to protect franchisees from unknowingly waiving their rights.
This type of clause is designed to ensure transparency and fairness in the franchise relationship, preventing franchisors from using waivers to shield themselves from liability for misrepresentations. Prospective Fly Fitness franchisees should carefully review the Franchise Disclosure Document and all related agreements to fully understand their rights and obligations, and they should consult with an attorney or franchise advisor if they have any questions or concerns.