What claim does Mr. Sandless ask the franchisee to waive regarding business failure?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
- Franchisee has conducted an independent investigation of all aspects relating to the financial, operational and other aspects of the business of operating the Franchised Business. Franchisee further acknowledges that, except as may be set forth in Franchisor's Disclosure Document, no representations of performance (financial or otherwise) for the Franchised Business provided for in this Agreement has been made to Franchisee by Franchisor and Franchisee and any and all Principals hereby waive any claim against Franchisor for any business failure Franchisee may experience as a franchisee under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 42–167)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, franchisees are asked to waive any claims against Mr. Sandless for business failure they may experience as a franchisee. This waiver is part of the Franchisee Acknowledgment Statement, which the franchisee must agree to as an inducement for Mr. Sandless to enter into the Franchise Agreement. However, this waiver is not applicable in California, Maryland, or Washington. Franchisees in Washington are instructed not to sign or initial the document.
This waiver means that, outside of California, Maryland, and Washington, franchisees essentially agree not to sue Mr. Sandless if their franchise business fails. This highlights the importance of conducting thorough due diligence and understanding the risks involved in operating a Mr. Sandless franchise. Prospective franchisees should carefully consider this waiver and its implications before investing in a franchise.
It is important to note that the Franchise Disclosure Document states that no statement signed by a franchisee can waive claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Mr. Sandless or its representatives. This provision supersedes any other term in any document executed in connection with the franchise. Therefore, while franchisees waive claims for general business failure, they do not waive rights related to misrepresentation or violations of franchise law.