For Kidokinetics franchises in South Dakota, does the provision regarding the inability to waive claims or disclaim reliance supersede other terms in documents related to the franchise?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
SOUTH DAKOTA
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee 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 23 — RECEIPT (FDD pages 59–205)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, a specific provision addresses the franchisee's rights in South Dakota. This provision ensures that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under South Dakota franchise law, including claims related to fraud in the inducement.
Specifically, the FDD states that franchisees cannot disclaim reliance on statements made by Kidokinetics, its franchise sellers, or anyone acting on Kidokinetics's behalf. This is designed to protect franchisees from unknowingly giving up their legal rights or being bound by disclaimers that could limit their ability to pursue legal action if they believe they were misled.
Importantly, this provision supersedes any other conflicting terms in any document executed in connection with the Kidokinetics franchise agreement. This means that even if other documents contain language that might suggest a franchisee is waiving certain rights or disclaiming reliance on certain statements, the specific provision in Item 23 of the FDD takes precedence, offering additional protection to the franchisee under South Dakota law.