Does any statement signed by a Ledgers franchisee waive claims of fraud in the inducement?
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.
EXHIBIT A
STATE ADDENDA TO THE DISCLOSURE DOCUMENT AND FRANCHISE AGREEMENT
The following modifications are to Loyalty Business Services LLC d/b/a Ledgers Franchise Disclosure Document and may supersede, to the extent then required by valid applicable state law, certain portions of the Franchise Agreement dated
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, a statement, questionnaire, or acknowledgment signed by a franchisee cannot waive claims under state franchise law, including fraud in the inducement. This protection ensures that franchisees retain their legal rights and recourse, regardless of any document they sign when starting the franchise relationship. This provision overrides any conflicting terms in any document related to the franchise agreement.
For franchisees in Minnesota and New York, there are additional state-specific protections. In Minnesota, no statement can waive claims of fraud in the inducement. Similarly, in New York, no statement, questionnaire, or acknowledgment can waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Ledgers or its representatives. These state addenda reinforce the protection against inadvertently waiving legal rights.
This safeguard is beneficial for prospective Ledgers franchisees as it prevents them from unknowingly relinquishing their right to pursue legal action if they believe they were misled or defrauded during the franchise sales process. It aligns with franchise regulations in many states that aim to protect franchisees from overreaching franchisors and ensures a fairer balance of power in the franchise relationship. Franchisees should still carefully review all documents and seek legal advice to fully understand their rights and obligations.