What is the effect of the acknowledgement of truthfulness of statements on the Mr. Sandless franchisor?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
35 | Troy, MI 48098 | | 913-499-6044 | 725-666-3113 | 248-971-9663 | | Minneapolis | Phoenix | Sioux Falls | | Barry Pinnock | Dave LoPresti | Thomas Clark Jr. | | 2221 Lukewood Dr. | 914 East Broadway | 2908 West Greenway St | | Chanhassen, MN 55317 | Tempe, AZ 85282 | Sioux Falls, SD 57107 | | 612-251-0021 | 480-280-8855 | 605-366-0245 | | South Sound | Spartanburg | | | Brian Jones | Jeff McLaughlin | | | 10707 Moller Dr. | 403 Falling Rock Way | | | Gig Harbor, WA 98332 | Greenville, SC 29615 | | | 253-355-8051 | 864-641-1423 | |
EXHIBIT H
FRANCHISEE ACKNOWLEDGMENT STATEMENT
MR. SANDLESS FRANCHISEE ACKNOWLEDGEMENT STATEMENT
*NOT FOR USE IN CALIFORNIA, MARYLAND OR WASHINGTON
** FRANCHISEES IN WASHINGTON: DO NOT SIGN OR INITIAL THIS DOCUMENT.
Acknowledgement of the truthfulness of the statements below are an inducement for the Franchisor to enter into a Franchise Agreement. Notify Franchisor immediately, prior to acknowledgment, if any statement below is incomplete or incorrect.
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.
- 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.
_____ Initial
- Franchisee has conducted an independent investigation of the business contemplated by this Agreement and understands and acknowledges that the business contemplated by this Agreement involves business risks making the success of the venture largely dependent upon the business abilities and participation of Franchisee and its efforts as an independent business operation.
_____ Initial
- Franchisee agrees that no claims of success or failure have been made to it or him or her prior to signing the Franchise Agreement and that it/she/he understands all the terms and conditions of the Franchise Agreement. Franchisee further acknowledges that the Franchise Agreement contains all oral and written agreements, representations and arrangements between the parties hereto, and any rights which the respective parties hereto may have had under any other previous contracts are hereby cancelled and terminated, and that this Agreement cannot be changed or terminated orally.
_____ Initial
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Source: Item 23 — RECEIPTS (FDD pages 42–167)
What This Means (2025 FDD)
According to the 2025 FDD, Mr. Sandless uses a Franchisee Acknowledgment Statement. This statement serves as an inducement for Mr. Sandless to enter into a Franchise Agreement with the franchisee. By signing this statement, the franchisee acknowledges the truthfulness of certain statements regarding their independent investigation, understanding of business risks, and disclaimer of reliance on any warranties or guarantees from Mr. Sandless about potential volume, profits, or success. This acknowledgment is not for use in California, Maryland, or Washington, and franchisees in Washington should not sign or initial the document.
Specifically, the franchisee acknowledges they have conducted their own independent investigation into the financial, operational, and other aspects of the Mr. Sandless business. They also acknowledge that, except as set forth in the Franchise Disclosure Document, Mr. Sandless has not made any representations of performance (financial or otherwise). The franchisee waives any claim against Mr. Sandless for any business failure they may experience as a franchisee. The franchisee also acknowledges that they have not relied upon any warranty or guarantee, express or implied, as to the potential volume, profits, or success of the business venture.
Furthermore, the franchisee acknowledges that Mr. Sandless's approval of the franchisee's business location does not constitute a warranty, recommendation, or endorsement of the location, nor any assurance of success or profitability. The franchisee also confirms they received the Franchise Disclosure Document, Franchise Agreement, and related attachments at least fourteen calendar days prior to signing the Franchise Agreement and that they understand its contents. They acknowledge having had ample opportunity to consult with their own advisors and that Mr. Sandless's attorneys have not advised or represented them. Finally, the franchisee confirms they have sufficient knowledge and experience in financial and business matters to make an informed investment decision.
However, the FDD states that no statement, questionnaire, or acknowledgment signed by a franchisee shall waive any claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on any statement made by Mr. Sandless or anyone acting on their behalf. This provision supersedes any other term of any document executed in connection with the franchise. This means that while the acknowledgment aims to protect Mr. Sandless from certain claims, it does not override state franchise laws or protect them from liability for fraudulent statements.