Can a Mrcool franchisee disclaim reliance on statements made by the franchisor through a signed statement?
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 the 2025 Mrcool Franchise Disclosure Document, a franchisee cannot disclaim reliance on statements made by Mrcool, its franchise seller, or anyone acting on Mrcool's behalf through any signed statement, questionnaire, or acknowledgement made in connection with the commencement of the franchise relationship. This protection is included in amendments to the franchise agreement for franchisees in California, Hawaii, Minnesota, New York, and Washington. This provision overrides any other conflicting terms in any document executed in connection with the franchise.
This means that Mrcool franchisees in the aforementioned states are protected by state franchise laws, including protection against fraud in the inducement. This ensures that franchisees cannot inadvertently waive their rights to make claims based on misrepresentations or false statements made by Mrcool during the franchise sales process. This is a significant protection for franchisees, as it prevents Mrcool from using contractual language to shield itself from liability for misleading statements.
It is important to note that the effectiveness of this provision is contingent upon meeting the jurisdictional requirements of the franchise laws in each specific state, independently and without relying on the amendment itself. Therefore, a Mrcool franchisee should consult with a legal professional to understand the full scope of their rights and protections under the franchise agreement and applicable state laws.