factual

What claims are Ledgers franchisees unable to waive, even with a signed statement?

Ledgers Franchise · 2025 FDD

Answer from 2025 FDD Document

No statement, questionnaire, or acknowledgment 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 22 — CONTRACTS (FDD page 46)

What This Means (2025 FDD)

According to Ledgers' 2025 Franchise Disclosure Document, a franchisee cannot waive certain claims, even if they sign a statement, questionnaire, or acknowledgment at the start of their franchise relationship. Specifically, franchisees cannot waive claims under any applicable state franchise law, including claims related to fraud in the inducement. Additionally, franchisees cannot disclaim reliance on any statement made by Ledgers, its franchise sellers, or anyone acting on Ledgers' behalf. This protection ensures that franchisees retain their legal rights and recourse against misrepresentations or violations of state franchise laws, regardless of any agreements they may have signed.

This provision is designed to protect franchisees from unknowingly or unintentionally giving up their legal rights. By preventing waivers of state franchise law claims and reliance on franchisor statements, Ledgers aims to ensure a fair and transparent franchise relationship. This means that if a franchisee believes they were misled or that Ledgers violated state franchise laws, they can pursue legal action, even if they signed documents that appear to waive those rights.

For prospective Ledgers franchisees, this non-waiver provision offers a degree of security and recourse. It reinforces the importance of carefully reviewing the Franchise Disclosure Document and related agreements, as franchisees are entitled to rely on the information provided by Ledgers. Should discrepancies or misrepresentations arise, this provision ensures that franchisees retain their ability to seek legal remedies under applicable state laws, strengthening their position in the franchise relationship.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.