For Mrcool franchisees, what is the effect of any statement, questionnaire, or acknowledgement signed in connection with starting the franchise relationship regarding waiving claims?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
ns 31000 through 31516).
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- Business and Professions Code Section 20010 voids a waiver of your rights under the Franchise Relations Act (Business and Professions Code Sections 20000 through 20043).
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- Item 6 "Other Fees," is supplemented by the addition of the following statement: "The highest interest rate allowed by law in the State of California is 10%."
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- California's Franchise Investment Law (Corporations Code Sections 31512 and 31512.1) states that any provision of a franchise agreement or related document requiring the franchisee to waive specific provisions of the law is contrary to public policy and is void and unenforceable. The law also prohibits a franchisor from disclaiming or denying (i) representations it, its employees or its agents make to you, (ii) our ability to rely on any representations it makes to you, or (iii) any violation of the law.
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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.
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- The following URL address is for the franchisor's website: www.mrcoolfranchising.com.
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, several states have specific provisions to protect franchisees from unintentionally waiving their rights through standard documents signed at the start of the franchise relationship. These provisions generally ensure that franchisees do not waive claims under applicable state franchise laws, including claims related to fraud in the inducement, or disclaim reliance on statements made by Mrcool or its representatives. These protections are included in amendments for Maryland, Michigan, Hawaii, Minnesota, New York, and Virginia.
Specifically, for franchisees operating in Maryland, any general release required as a condition of renewal, sale, or transfer of the franchise does not apply to liabilities arising under the Maryland Franchise Registration and Disclosure Law. Franchisees in Maryland also have the right to bring lawsuits in Maryland for claims under this law, and such claims must be brought within three years of the franchise grant.
Similarly, in Michigan, certain unfair provisions that might appear in franchise documents are void and unenforceable. These include prohibitions on joining franchisee associations and requirements to assent to releases or waivers that deprive franchisees of rights and protections under Michigan law. This does not prevent a franchisee from settling claims after entering into the Franchise Agreement. In Virginia, it is unlawful for Mrcool to cancel a franchise without reasonable cause, as defined by the Virginia Retail Franchising Act.
These state-specific amendments are crucial for prospective Mrcool franchisees to understand, as they ensure that franchisees' rights are protected under state laws, regardless of any standard waivers or acknowledgments signed during the commencement of the franchise relationship. Franchisees should be aware of the specific protections afforded to them by the laws of their state.