Can Ledgers disclaim any violations of the law?
Ledgers Franchise · 2025 FDDAnswer 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, Ledgers cannot enforce waivers of certain legal claims from franchisees, particularly those arising from state franchise laws. Specifically, any statement, questionnaire, or acknowledgment signed by a franchisee at the start of their franchise relationship cannot waive claims related to state franchise law, including claims of fraud. This protection extends to disclaiming reliance on statements made by Ledgers or its representatives. This non-waiver provision takes precedence over any conflicting terms in the franchise agreement.
For prospective Ledgers franchisees, this means that you cannot be forced to give up your legal rights under state franchise laws through standard paperwork at the beginning of your franchise. This is particularly relevant if you believe you were induced into the franchise agreement through fraudulent statements or misrepresentations made by Ledgers. The FDD emphasizes that franchisees retain the right to pursue claims against the franchisor for violations of franchise laws, irrespective of any initial agreements suggesting otherwise.
Furthermore, the FDD includes state-specific addenda that provide additional protections. For example, for franchises governed by California law, the California Franchise Investment Law takes precedence if any terms in the disclosure document are inconsistent. Similarly, New York law ensures that franchisees retain all rights and causes of action under Article 33 of the General Business Law of the State of New York, preventing any waiver of rights conferred by this article. These state-specific provisions reinforce the franchisee's ability to seek legal recourse for violations of franchise laws, regardless of the franchise agreement's general terms.
However, it is important to note that these protections may be limited to specific state laws and certain types of claims. Franchisees should consult with an attorney to fully understand their rights and the extent to which they are protected under applicable state and federal laws. While Ledgers cannot disclaim all violations of the law, the specific scope of these protections depends on the jurisdiction and the nature of the claim.