Under the Mr. Sandless Franchise Agreement, what effect does the Franchisee Acknowledgment Statement have on waiving claims under state franchise law?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
Exhibit H: Franchisee Acknowledgment Statement, as permitted by state law. 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 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, the Franchisee Acknowledgment Statement does not waive any claims under applicable state franchise law. This includes claims of fraud in the inducement or disclaiming reliance on statements made by Mr. Sandless or anyone acting on their behalf. This provision takes precedence over any conflicting terms in any document related to the franchise agreement.
This means that even if a franchisee signs an acknowledgment that seems to waive their rights, it will not be legally effective in preventing them from pursuing claims under state franchise laws. This protection is particularly important because franchise laws vary significantly from state to state, and franchisees need to retain their rights under those laws.
This clause protects franchisees by ensuring they can't inadvertently waive their legal rights through acknowledgments or statements made during the franchise commencement. It allows franchisees to hold Mr. Sandless accountable for any misrepresentations or fraudulent behavior, regardless of any acknowledgments signed. This is a standard protective measure in franchising, as state franchise laws are designed to protect franchisees from potential abuses of power by franchisors.