In California, what effect does a statement, questionnaire, or acknowledgement signed by a Learningrx franchisee have on waiving claims under state franchise laws?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
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- California's Franchise Investment Law (Corporations Code sections 31512 and 31512.1) states that any provision of a franchise agreement or related document requiring the franchisee to waive specific provisions of the law is contrary to public policy and is void and unenforceable. The law also prohibits a franchisor from disclaiming or denying (i) representations it, its employees, or its agents make to you, (ii) your ability to rely on any representations it makes to you, or (iii) any violations of the law.
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- No statement, questionnaire, or acknowledgement 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 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, in California, any statement, questionnaire, or acknowledgement signed by a franchisee at the start of their franchise relationship does not waive claims under state franchise law. This includes claims related to fraud in the inducement. Furthermore, franchisees cannot disclaim reliance on statements made by Learningrx, its franchise sellers, or anyone acting on Learningrx's behalf. This protection supersedes any conflicting terms in any document related to the franchise agreement.
This provision is significant for prospective Learningrx franchisees in California because it protects their right to pursue legal claims, even if they have signed documents that appear to waive those rights. This ensures that franchisees are not bound by clauses that could prevent them from seeking legal recourse if they believe they have been misled or defrauded. It also prevents Learningrx from denying representations made to the franchisee.
California's Franchise Investment Law (Corporations Code sections 31512 and 31512.1) reinforces this protection by stating that any provision in a franchise agreement requiring a franchisee to waive specific provisions of the law is against public policy and therefore void and unenforceable. The law also explicitly prohibits Learningrx from disclaiming or denying representations made to the franchisee, their ability to rely on those representations, or any violations of the law.
Additionally, the Learningrx FDD states that the highest interest rate permitted by law in California is ten percent (10%). The Learningrx website has not been reviewed or approved by the California Department of Financial Protection and Innovation, and any complaints about the website's content can be directed to that department. The registration of the Learningrx franchise does not constitute approval, recommendation, or endorsement by the Commissioner of the Department of Financial Protection and Innovation.