Does any statement signed by a Ledgers franchisee waive claims under state franchise 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 the 2025 Ledgers Franchise Disclosure Document, a statement, questionnaire, or acknowledgment signed by a franchisee at the start of the franchise relationship does not waive claims under state franchise law. This includes claims related to 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.
This protection is explicitly stated in Item 22, reinforcing that franchisees retain their rights under applicable state franchise laws, regardless of any agreements signed during the commencement of the franchise. This non-waiver provision is particularly relevant in states with franchise-specific laws, such as California, Illinois, Minnesota, Maryland, and New York, where additional state addenda may further modify the franchise agreement to comply with local regulations.
For prospective Ledgers franchisees, this means that they cannot inadvertently forfeit their legal rights under state franchise laws through standard documents signed when starting the franchise. This provides a level of security, ensuring that franchisees can pursue legal remedies if they believe their rights have been violated, even if they have signed agreements that might suggest otherwise.
However, it is important for franchisees to be aware of the specific franchise laws in their state and to consult with legal counsel to fully understand their rights and obligations. While Ledgers's FDD aims to protect franchisees' rights, the specific application of these protections can vary depending on the jurisdiction and the particular circumstances of the franchise relationship.