What is Ledgers prohibited from disclaiming or denying under the Franchise Investment Law?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchise Investment Law (Corporations Code sections 31512 and 31512.1) states that any provision of a franchise agreement or related document requiring the franchisee to waive specific provisions of the law is contrary to public policy and is void and unenforceable. The law also prohibits a franchisor from disclaiming or denying (i) representations it, its employees, or its agents make to you, (ii) your ability to rely on any representations it makes to you, or (iii) any violations of the law.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 Ledgers Franchise Disclosure Document, specifically regarding franchises governed by California law, Ledgers is prohibited from disclaiming or denying certain representations and a franchisee's ability to rely on those representations. This protection is afforded under the Franchise Investment Law (Corporations Code sections 31512 and 31512.1).
Specifically, Ledgers cannot disclaim or deny representations made by itself, its employees, or its agents to the franchisee. Furthermore, Ledgers cannot deny the franchisee's ability to rely on any representations Ledgers makes. Finally, Ledgers is prohibited from disclaiming or denying any violations of the law.
This provision ensures that franchisees are protected from misleading or false statements made by Ledgers during the franchise sales process. It reinforces the franchisee's right to take legal action if they believe they were provided with inaccurate information that influenced their decision to invest in a Ledgers franchise. This protection is in place to maintain transparency and fairness in the franchise relationship.