What is the impact of federal and state law on the Learningrx franchisee affiliate's waiver of claims?
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, several states have specific regulations that impact a franchisee's ability to waive claims against Learningrx. These regulations generally aim to protect franchisees from unknowingly surrendering their rights under state franchise laws.
In Rhode Island, South Dakota, and Virginia, any statement, questionnaire, or acknowledgment signed by a Learningrx franchisee at the start of their franchise relationship cannot waive claims under applicable state franchise law, including claims of fraud in the inducement. This also means a franchisee cannot disclaim reliance on statements made by Learningrx or its representatives. These provisions override any conflicting terms in other documents related to the franchise agreement.
North Dakota's Franchise Investment Law impacts several aspects of the franchise agreement. Specifically, any requirement for a franchisee to waive a jury trial, consent to waivers of exemplary and punitive damages, or agree to a limitation of claims within one year may not be enforceable. Additionally, a clause requiring the franchisee to pay all costs incurred by Learningrx in enforcing the agreement may also be unenforceable. The Washington Franchise Investment Protection Act also states that its provisions will prevail in the event of a conflict of laws. These stipulations ensure that Learningrx franchisees in these states retain certain legal rights and protections, regardless of what the standard franchise agreement might otherwise stipulate.