Can a Mrcool franchisee disclaim reliance on statements made by the franchisor in connection with the commencement of the franchise relationship?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
No statement, questionnaire or acknowledgement 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 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, a franchisee's ability to disclaim reliance on statements made by the franchisor is limited by certain state franchise laws. Specifically, the FDD includes amendments for New York, Hawaii, California, Maryland, and Washington, each addressing this issue within the context of their respective state laws.
For instance, the New York, Hawaii, and Maryland amendments explicitly state that no agreement signed by a franchisee can disclaim reliance on statements made by the franchisor or its representatives. This provision is designed to protect franchisees from being bound by clauses that might prevent them from pursuing claims based on misrepresentations made during the franchise sales process. These stipulations supersede any conflicting terms in the franchise agreement.
These state-specific amendments ensure that franchisees retain their rights under applicable state franchise laws, including the right to claim fraud in the inducement, regardless of any statements or acknowledgments they may have signed. Prospective Mrcool franchisees should carefully review the FDD and any state-specific amendments to understand their rights and protections under the laws of their state.