Can a Learningrx franchisee in Washington disclaim reliance on statements made by the franchisor or its representatives by signing a statement, questionnaire, or acknowledgement?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
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Item 17(u) of the Franchise Disclosure Document, Section 16 of the Franchise Agreement and Section 10.01 of the Area Developer Agreement are amended to state: Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise.
Section 19 and Attachment VII of the Franchise Agreement and Section 14 of the Area Developer Agreement are amended to state: All representations requiring prospective franchisees to assent to a release, estoppels or waiver of liability are not intended to nor shall they act as a release, estoppel or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law.
The Franchise Agreement is hereby amended to delete Sections 19.1 and 19.2 as the provisions violate the North American Securities Administrators Association Statement of Policy Regarding the Use of Franchise Questionnaires and Acknowledgments which has been adopted by the Maryland Office of the Attorney General, Securities Division.
The Attachment VII to the Franchise Agreement, Statement of Franchisee Questionnaire, is hereby deleted in its entirety.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, a Learningrx franchisee in Washington cannot disclaim reliance on statements made by Learningrx or its representatives by signing a statement, questionnaire, or acknowledgement. The FDD includes a specific addendum for Washington that addresses this issue. This addendum ensures that no document signed by the franchisee at the start of the franchise relationship can waive claims under franchise law or disclaim reliance on statements made by Learningrx.
This protection is reinforced by the deletion of certain sections in the franchise and area development agreements that could potentially violate the North American Securities Administrators Association's policy on franchise questionnaires and acknowledgments, as adopted by the Washington Department of Financial Institutions, Securities Division. Specifically, Sections 19.1 and 19.2 of the franchise agreement and Section 14.04 of the area development agreement are removed to prevent any unintended waivers of franchisee rights.
The inclusion of this addendum and the deletion of conflicting sections demonstrate Learningrx's adherence to Washington's franchise laws, which aim to protect franchisees from unknowingly relinquishing their legal rights. This means that any representations made by Learningrx during the franchise sales process can be relied upon by the franchisee, and the franchisee retains the right to pursue legal action if those representations prove to be false or misleading.
Furthermore, the New Franchisee Disclosure Questionnaire explicitly states that franchisees in Washington should not answer certain questions and that the questionnaire does not waive any liability Learningrx may have under the Washington Franchise Investment Protection Act. This provides an additional layer of assurance for prospective franchisees in Washington, confirming that their rights are protected throughout the franchise relationship.