In Virginia, what effect does a statement, questionnaire, or acknowledgment signed by a Hyper Kidz franchisee have on waiving claims under state franchise law?

According to Hyper Kidz's 2024 Franchise Disclosure Document, specific provisions address the enforceability of waivers and acknowledgments signed by franchisees in Virginia. The document states that no statement, questionnaire, or acknowledgment signed by a franchisee in connection with starting the franchise relationship can waive claims under Virginia's state franchise law. This includes claims related to fraud in the inducement or disclaiming reliance on statements made by Hyper Kidz or its representatives. This protection is explicitly designed to override any conflicting terms in any document executed as part of the franchise agreement. This provision is included in an amendment to the franchise agreement required by the Commonwealth of Virginia. This amendment ensures that franchisees are not unknowingly or unintentionally giving up their rights under state law when they sign documents to begin their Hyper Kidz franchise.

This means that even if a franchisee signs a document that appears to waive certain rights or claims, that waiver will not be enforceable under Virginia law. The franchisee retains the right to pursue claims against Hyper Kidz for violations of state franchise law, including claims of fraud. This protection is particularly important for prospective franchisees who may not fully understand the legal implications of the documents they are signing. It ensures that Hyper Kidz cannot use these documents to shield itself from liability for unlawful conduct.

This type of provision is not uncommon in franchise agreements, particularly in states with strong franchise protection laws. These laws aim to level the playing field between franchisors and franchisees, recognizing that franchisees often have less bargaining power and may be more vulnerable to unfair practices. By prohibiting waivers of state franchise law claims, these laws ensure that franchisees have recourse if they are harmed by the franchisor's actions. Prospective Hyper Kidz franchisees in Virginia should be aware of this protection and consult with an attorney to fully understand their rights under state law.