Does the Mr. Sandless franchise agreement allow franchisees to disclaim reliance on statements made by the franchisor?
Mr_Sandless 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 23 — RECEIPTS (FDD pages 42–167)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, the Franchisee Acknowledgment Statement includes a provision that addresses the disclaimer of reliance on statements made by the franchisor. However, this provision is not applicable in California, Maryland, or Washington. Franchisees in Washington are instructed not to sign or initial the document. The statement clarifies that no acknowledgment signed by a franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor. This specific provision overrides any other conflicting terms in any document related to the franchise agreement.
This means that, except in California, Maryland, and Washington, Mr. Sandless franchisees acknowledge that they have conducted their own independent investigation into the financial, operational, and other aspects of operating the franchised business. Franchisees also acknowledge that, unless explicitly stated in the Franchise Disclosure Document, no performance representations (financial or otherwise) have been made by Mr. Sandless. By signing, franchisees waive any claims against Mr. Sandless for business failure experienced as a franchisee under the agreement.
This acknowledgment aims to ensure that franchisees make informed decisions based on their own due diligence and not solely on representations made by the franchisor. The inclusion of this statement protects franchisees from unknowingly waiving their rights to make claims against the franchisor based on misrepresentations, especially in states with franchise laws designed to protect franchisees. Prospective franchisees should carefully review this acknowledgment and understand its implications, especially if they are located outside of California, Maryland, and Washington.