Does the Learningrx franchise agreement allow a franchisee to disclaim reliance on statements made by the franchisor or its representatives?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
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 the 2025 Learningrx Franchise Disclosure Document, in certain states, the franchise agreement does not allow a franchisee to disclaim reliance on statements made by Learningrx or its representatives. Specifically, addenda for Illinois, Rhode Island, Virginia, South Dakota, and Wisconsin state that no statement, questionnaire, or acknowledgement signed by a franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Learningrx or its representatives. This provision overrides any conflicting terms in other documents related to the franchise agreement.
This means that in these states, a Learningrx franchisee cannot sign away their right to claim they relied on statements made by Learningrx during the franchise sales process, especially if those statements turn out to be false or misleading. This protection is particularly relevant in cases of alleged fraud, where a franchisee might argue they were induced to invest based on inaccurate information provided by Learningrx.
For prospective Learningrx franchisees in these states, this addendum provides an additional layer of legal protection. It prevents Learningrx from enforcing clauses that might otherwise limit the franchisee's ability to pursue legal action based on misrepresentations. Franchisees should consult with legal counsel to fully understand their rights and protections under state franchise laws.