Does the NASAA SOP Acknowledgment for Kitchen Solvers franchisees in Regulated States allow for disclaiming reliance on statements made by the franchisor?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
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- NASAA SOP Acknowledgment. For prospective franchisees that reside in or are seeking to operate the Franchised Business in any Regulated State, the Franchise Agreement will be amended to include the following provision:
- "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' 2025 Franchise Disclosure Document, the NASAA SOP Acknowledgment for franchisees residing in or operating in Regulated States explicitly prevents franchisees from disclaiming reliance on statements made by the franchisor. This acknowledgment is included as an amendment to the Franchise Agreement. Specifically, any statement, questionnaire, or acknowledgment signed by a franchisee cannot 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 conflicting terms in other documents related to the franchise agreement. This protection applies to those operating in a Regulated State.
This means that Kitchen Solvers franchisees in Regulated States retain their legal rights to pursue claims based on misrepresentations or fraudulent statements made by the franchisor during the franchise sales process. The amendment ensures that franchisees cannot inadvertently waive these rights through standard acknowledgments or questionnaires. This is a significant protection for franchisees, as it prevents Kitchen Solvers from using standardized documents to shield themselves from liability for misleading statements.
For a prospective Kitchen Solvers franchisee, this addendum offers a degree of security. It confirms that the franchisee's rights under applicable state franchise laws are protected, and they cannot be compelled to waive reliance on the franchisor's statements. This protection is particularly important in states with strong franchise laws, as it ensures that franchisees have recourse if they believe they were misled during the franchise sales process. This provision aims to create a fairer balance of power between the franchisor and franchisee, especially during the initial stages of the franchise relationship.