factual

For Kitchen Solvers, can a franchisee disclaim reliance on statements made by the franchisor or their representatives in connection with the franchise?

Kitchen_Solvers Franchise · 2025 FDD

Answer from 2025 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 and 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 — Receipts (FDD pages 49–190)

What This Means (2025 FDD)

According to the 2025 Kitchen Solvers Franchise Disclosure Document, a franchisee cannot disclaim reliance on statements made by the franchisor or their representatives. Specifically, the FDD states that no statement, questionnaire, or acknowledgment signed by a franchisee in connection with starting the franchise can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor or their representatives. This provision takes precedence over any other conflicting terms in any document related to the franchise agreement.

This means that even if a Kitchen Solvers franchisee signs a document suggesting they did not rely on the franchisor's statements, that document will not prevent them from later claiming they did rely on those statements, especially in cases of fraud or violations of state franchise laws. This protection is significant for franchisees as it ensures they can hold Kitchen Solvers accountable for representations made during the franchise sales process.

Furthermore, the Kitchen Solvers FDD explicitly deletes a section from the Franchise Agreement (Section 16.B) that would have required franchisees to acknowledge they were entering the agreement based on their own independent investigation and not due to any representations made by the franchisor or its representatives. This deletion reinforces the franchisee's right to rely on the franchisor's statements and representations. This protection is also reinforced by addenda for specific states like New York, Maryland, Illinois, Minnesota, Wisconsin, and California, which reiterate that franchisees cannot waive claims under state franchise law or disclaim reliance on the franchisor's statements.

In summary, Kitchen Solvers franchisees are protected from inadvertently waiving their rights to claim reliance on statements made by the franchisor. This ensures that franchisees can seek legal recourse if they believe they were misled or provided with fraudulent information during the franchise sales process, regardless of any disclaimers they may have signed.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.