factual

Does the provision regarding waiver of claims and disclaiming reliance supersede other terms in Mrcool franchise documents?

Mrcool Franchise · 2025 FDD

Answer 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, amendments to the franchise agreement address the issue of franchisees waiving rights or disclaiming reliance on franchisor statements. For franchisees in New York, Maryland, Minnesota, California, and Virginia, specific stipulations are in place to protect their rights under applicable state franchise laws.

Specifically, the FDD states that no statement, questionnaire, or acknowledgement signed by a franchisee can waive claims under state franchise law, including claims related to fraud in the inducement. Similarly, franchisees cannot disclaim reliance on statements made by Mrcool or its representatives. This protection is significant because it prevents Mrcool from using standard contract language to shield itself from liability for misrepresentations or violations of franchise laws.

Moreover, the FDD explicitly states that this provision supersedes any other term in any document executed in connection with the franchise. This means that even if other parts of the franchise agreement seem to contradict this protection, the language preventing waiver of claims and disclaimer of reliance takes precedence. However, these protections are only effective to the extent that the jurisdictional requirements of the relevant state franchise law are met independently, without relying on the amendment itself.

Prospective Mrcool franchisees should be aware of these state-specific amendments and understand that they are designed to provide additional protection beyond the standard terms of the franchise agreement. It is important to consult with a legal professional to fully understand the implications of these provisions and how they apply to their specific situation and state.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.