Can a Hyper Kidz franchisee disclaim reliance on statements made by the franchisor or its representatives in connection with the commencement of the franchise relationship?

According to the 2024 Hyper Kidz Franchise Disclosure Document, franchisees are protected from waiving claims or disclaiming reliance on franchisor statements, with some state-specific stipulations.

Specifically, the FDD states that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under applicable state franchise law, including fraud in the inducement. Furthermore, franchisees cannot disclaim reliance on statements made by Hyper Kidz, its franchise sellers, or anyone acting on Hyper Kidz's behalf. This protection applies at the commencement of the franchise relationship and supersedes any conflicting terms in any document executed in connection with the franchise.

Several states, including Virginia, Minnesota, Illinois, and Maryland, have addenda that reinforce these protections. For example, the Virginia addendum explicitly states that no statement can waive claims or disclaim reliance on statements made by the franchisor. Similarly, the Minnesota addendum references statutes that prohibit requiring franchisees to waive jury trials or consent to liquidated damages. The Illinois addendum also confirms that franchisees cannot waive compliance with the Illinois Franchise Disclosure Act or disclaim reliance on the franchisor's statements.

These provisions ensure that Hyper Kidz franchisees are not bound by agreements that force them to relinquish their legal rights or deny reliance on representations made by the franchisor during the franchise sales process. This offers a degree of protection against potentially misleading or fraudulent statements made to induce them into the franchise agreement.