What does the Mr. Sandless franchisee acknowledge regarding representations made by the franchisor?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
s 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
| 4. | Franchisee has no knowledge of any representations by Franchisor or its officers, directors, shareholders, employees, sales representatives, agents or servants, about the business contemplated by the Franchise Agreement that are contrary to the terms of the Franchise Agreement or the documents incorporated herein. Franchisee acknowledges that no representations or warranties are made or implied, except as specifically set forth in the Franchise Agreement. Franchisee represents, as an inducement to Franchisor's entry into this Agreement, that it has made no misrepresentations in obtaining the Franchise Agreement. |
|---|---|
| Initial |
- Franchisor expressly disclaims the making of, and Franchisee acknowledges that it has not received or relied upon, any warranty or guarantee, express or implied, as to the potential volume, profits or success of the business venture contemplated by the Franchise Agreement.
_____ Initial
- Franchisee acknowledges that Franchisor's approval or acceptance of Franchisee's Business location does not constitute a warranty, recommendation or endorsement of the location for the Franchised Business, nor any assurance by Franchisor that the operation of the Franchised Business at the premises will be successful or profitable.
_____ Initial
- Franchisee acknowledges that it has received the Mr. Sandless Franchise, LLC Franchise Disclosure Document with a complete copy of the Franchise Agreement and all related Attachments and agreements at least fourteen (14) calendar days prior to the date on which the Franchise Agreement was executed. Franchisee further acknowledges that Franchisee has read such Franchise Disclosure Document and understands its contents.
_____ Initial
Source: Item 23 — RECEIPTS (FDD pages 42–167)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, franchisees acknowledge several key points regarding representations made by the franchisor. Specifically, franchisees confirm they haven't relied on any warranties or guarantees, whether express or implied, regarding the potential volume, profits, or overall success of the Mr. Sandless business venture, except as explicitly stated in the Franchise Disclosure Document. This means Mr. Sandless does not assure any level of profitability or success. Franchisees also acknowledge that the franchisor's approval of a business location doesn't act as a warranty, recommendation, or endorsement of that location, nor does it guarantee the success or profitability of operating the franchised business at that location. This highlights that the franchisee is responsible for assessing the suitability of their chosen location. Franchisees confirm they've had the opportunity to consult with their own advisors and possess sufficient business knowledge to make an informed investment decision. They also acknowledge that no claims of success or failure have been made to them prior to signing the Franchise Agreement.
These acknowledgements serve to protect Mr. Sandless from potential legal claims based on misrepresentation or unrealistic expectations. By signing these statements, franchisees affirm they are entering the agreement with a clear understanding of the risks involved and are not relying on any guarantees of financial success. This is a common practice in franchising, where the franchisee's individual effort and business acumen play a significant role in the success of their business.
However, the FDD also includes a caveat for franchisees in California, Maryland, and Washington, stating that no acknowledgement 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 or its representatives. This provision supersedes any other term in the franchise agreement, offering additional protection to franchisees in those states. This suggests that while franchisees generally acknowledge the risks and independent nature of the business, their rights under state franchise laws are preserved, particularly regarding fraudulent or misleading statements.