For Moes Southwest Grill franchises in Hawaii, what effect do statements, questionnaires, or acknowledgements signed by the franchisee have on waiving claims under state franchise law or disclaiming reliance on statements made by the franchisor?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
The following provision applies only to franchisees and Franchised Businesses that are subject to the state franchise disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin:
No statement, questionnaire, or acknowledgement signed or agreed to by you 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 us, any franchise seller, or any other person acting on behalf of us. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to the 2025 Moe's Southwest Grill Franchise Disclosure Document, a specific provision addresses the enforceability of waivers and disclaimers for franchisees in Hawaii. For Moe's Southwest Grill franchisees subject to Hawaii's state franchise disclosure laws, any statement, questionnaire, or acknowledgement signed in connection with starting the franchise will not waive claims under state franchise law, including claims of fraud.
This means that even if a franchisee signs a document that seems to waive their rights or disclaims reliance on the franchisor's statements, those waivers or disclaimers will not be legally effective in Hawaii. This protection extends to claims of fraud in the inducement, meaning if the franchisee was misled into signing the agreement, they can still pursue a claim.
This provision is designed to protect franchisees by ensuring they cannot inadvertently give up their legal rights under Hawaii franchise law through standard form documents. It also reinforces that franchisees can rely on statements made by Moe's Southwest Grill during the franchise sales process, even if those statements are not explicitly included in the franchise agreement. This protection supersedes any conflicting terms in any document executed in connection with the franchise agreement.