Can a Learningrx franchisee disclaim reliance on statements made by the franchisor or their representatives through a signed statement?
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, a franchisee cannot disclaim reliance on statements made by Learningrx or its representatives, even through a signed statement. Specifically, addenda for Illinois, Rhode Island, South Dakota, Virginia, and Wisconsin clarify 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 franchise documents.
This means that Learningrx franchisees in these states retain their legal rights to pursue claims based on misrepresentations or fraudulent statements made during the franchise sales process, regardless of any disclaimers they may have signed. This protection is particularly important because it prevents Learningrx from using standardized documents to shield themselves from liability for potentially misleading information provided to prospective franchisees.
For prospective Learningrx franchisees, this information highlights the importance of carefully reviewing the FDD and any state-specific addenda. While the standard franchise agreement might contain provisions that appear to limit your ability to bring claims against Learningrx, these addenda ensure that your rights under state franchise laws are preserved. It is advisable to consult with an attorney to fully understand your rights and obligations before signing any franchise agreement.