Does the Rhode Island provision regarding waiver of claims supersede other terms in documents related to the Kidokinetics franchise?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
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.
VIRGINIA
Source: Item 23 — RECEIPT (FDD pages 59–205)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, a specific provision applies to franchisees in Rhode Island regarding waivers of claims. For Rhode Island franchisees, any statement, questionnaire, or acknowledgment signed in connection with starting the franchise cannot waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Kidokinetics or its representatives. This specific provision takes precedence over any conflicting terms in any document related to the franchise agreement.
This means that Kidokinetics franchisees in Rhode Island retain their rights under Rhode Island franchise law, regardless of any agreements they may sign. This protection ensures that franchisees cannot inadvertently waive their legal rights or claims against the franchisor. The FDD also states that the franchisor and franchisee do not agree with the Rhode Island provision and believe that all provisions of the Franchise Agreement and Supplemental Agreements are fully enforceable. The franchisor and franchisee intend to fully enforce all provisions, including choice of law, venue, arbitration, and dispute resolution, and rely on federal pre-emption under the Federal Arbitration Act.
Kidokinetics also includes a general statement that if any of the state-specific addenda are marked as "Applicable Addenda", the terms of that addenda will supersede any conflicting terms in the Franchise Disclosure Document, Franchise Agreement, and other specified agreements. The Rhode Island addendum is included in the list of addenda that this applies to.