If a franchisee signs an acknowledgement in connection with the commencement of the Kitchen Solvers franchise relationship, can they waive claims under state franchise law?
Kitchen_Solvers Franchise · 2025 FDDAnswer 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 Kitchen Solvers's 2025 Franchise Disclosure Document, a franchisee cannot waive claims under applicable state franchise law by signing any statement, questionnaire, or acknowledgment in connection with starting the franchise relationship. This protection extends to claims of fraud in the inducement and disclaiming reliance on statements made by Kitchen Solvers or its representatives. This provision overrides any conflicting terms in any document related to the franchise agreement. This ensures that franchisees retain their rights under state franchise laws, regardless of any acknowledgments they may sign when commencing their Kitchen Solvers franchise.
This safeguard is particularly important because franchise agreements often contain numerous acknowledgments and certifications. Without this clause, a franchisee might inadvertently waive important legal rights. The FDD explicitly states that this provision supersedes any other term of any document executed in connection with the franchise, reinforcing the protection for the franchisee.
Several states, including Illinois, Maryland, Minnesota, New York, Washington and Wisconsin, have specific addenda reinforcing this protection. For example, the Minnesota addendum specifies that no section providing for a general release as a condition of renewal or transfer will act as a release or waiver of any liability incurred under the Minnesota Franchise Act. Similarly, the Washington addendum states that the release does not apply with respect to claims arising under the Washington Franchise Investment Protection Act. These state-specific provisions further emphasize the franchisee's right to legal recourse under state laws, regardless of any agreements signed at the commencement of the franchise relationship.
Prospective Kitchen Solvers franchisees should be aware of these protections and understand that they cannot inadvertently waive their rights under state franchise laws through standard acknowledgments or questionnaires. This provision offers a significant benefit by ensuring that franchisees retain their legal rights and recourse options, even after signing agreements and acknowledgments at the start of their franchise journey.