Does the Learningrx franchise agreement in South Dakota supersede any other document term regarding 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, for franchisees in South Dakota, a specific provision addresses reliance on statements made by Learningrx or its representatives. The FDD states that no statement, questionnaire, or acknowledgement signed by a franchisee can waive claims under state franchise law, including fraud, or disclaim reliance on statements made by Learningrx. This specific provision takes precedence over any other conflicting terms in any document related to the franchise agreement.
In practical terms, this means that even if a franchisee signs a document that seems to disclaim reliance on the franchisor's statements, that disclaimer is not enforceable in South Dakota. This protects the franchisee from being bound by clauses that could prevent them from pursuing legal action based on misleading information provided by Learningrx during the franchise sales process.
This type of provision is designed to protect franchisees and ensure they are not unfairly disadvantaged by contract terms. It reflects a recognition that franchisees may rely heavily on the franchisor's representations when deciding to invest in the franchise. Prospective Learningrx franchisees in South Dakota should understand this protection and consult with an attorney to fully understand their rights under state law.