Does the Ledgers franchise agreement allow a franchisee to disclaim reliance on statements made by the franchisor or its representatives through signed questionnaires or acknowledgements?
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 the 2025 Ledgers Franchise Disclosure Document, the franchise agreement does not allow a franchisee to disclaim reliance on statements made by Ledgers or its representatives through signed questionnaires or acknowledgements.
Specifically, any statement, questionnaire, or acknowledgment signed by a franchisee at the start of the franchise relationship cannot waive claims under state franchise law, including claims related to fraud in the inducement. Furthermore, these documents cannot disclaim reliance on statements made by Ledgers, franchise sellers, or anyone acting on Ledgers's behalf. This provision takes precedence over any conflicting terms in any document related to the franchise agreement.
For prospective Ledgers franchisees, this means that any attempt to waive rights or disclaim reliance on statements made by Ledgers through questionnaires or acknowledgments will not be legally binding. This protection helps ensure that franchisees can pursue legal remedies if they believe they were misled or defrauded during the franchise sales process. This clause is particularly relevant in states with strong franchise laws, such as California and New York, which have specific regulations to protect franchisees' rights and prevent franchisors from using waivers to avoid liability.