What is the effect of a Ledgers franchisee signing an acknowledgement that waives claims under any applicable state franchise law?

According to Ledgers' 2025 Franchise Disclosure Document, any acknowledgement signed by a franchisee related to the commencement of the franchise relationship does not waive claims under applicable state franchise law. This includes claims of fraud in the inducement or disclaiming reliance on statements made by Ledgers or its representatives. This provision overrides any conflicting terms in other franchise documents.

For franchisees in specific states like Maryland and Washington, additional stipulations apply. In Maryland, representations requiring a release, estoppel, or waiver of liability do not act as a release, estoppel, or waiver of liability under the Maryland Franchise Registration and Disclosure Law. Washington franchisees are subject to a separate Washington Addendum, making the general acknowledgement inapplicable to them.

For Minnesota franchisees, the FDD states that Minnesota Rules prohibit Ledgers from requiring a franchisee to agree to a general release. Similarly, in New York, the franchisee retains all rights and causes of action arising from Article 33 of the General Business Law of the State of New York, ensuring the non-waiver provisions of General Business Law Sections 687(4) and 687(5) are satisfied. California law voids any waiver of rights under the Franchise Investment Law and the Franchise Relations Act upon renewal or transfer of the franchise.

These stipulations ensure that franchisees retain their legal rights and protections under state franchise laws, regardless of any acknowledgements they may sign at the commencement of their franchise relationship with Ledgers. Prospective franchisees should carefully review the addenda specific to their state and consult with legal counsel to fully understand their rights and obligations.