Can a Mrcool franchisee disclaim reliance on statements made by the franchisor or their representatives when starting the franchise?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 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 the 2025 Mrcool FDD, in several states, a franchisee cannot disclaim reliance on statements made by Mrcool or its representatives. Specifically, amendments for California, Hawaii, Minnesota, New York and Washington state that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor or its representatives. This provision overrides any other conflicting terms in the franchise agreement.
This means that Mrcool franchisees in these states retain their right to pursue legal action based on misrepresentations or fraudulent statements made during the franchise sales process, even if they've signed documents that appear to waive such claims. This protection is particularly important because it prevents Mrcool from using standard contract language to shield itself from liability for misleading information provided to potential franchisees.
However, it's important to note that these protections are only effective to the extent that the jurisdictional requirements of the relevant state's franchise law are met independently. This implies that the franchisee's location, the location of the Mrcool outlet, and where the offer and acceptance of the franchise occurred can affect whether these state-specific protections apply. Prospective franchisees should consult with a legal professional to determine how these provisions apply to their specific circumstances and to fully understand their rights under state franchise laws.