Does the provision regarding waivers and disclaimers in the Mrcool Franchise Agreement supersede other terms in documents related to the franchise?
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 specific provision addresses waivers and disclaimers related to state franchise laws. For franchisees in New York, Maryland, and Minnesota, any statement, questionnaire, or acknowledgement signed in connection with starting the franchise cannot waive claims under applicable state franchise law, including claims of fraud in the inducement, or disclaim reliance on statements made by Mrcool or its representatives.
This provision is explicitly stated to supersede any other term in any document executed in connection with the Mrcool franchise. This means that if there's a conflict between this clause and any other part of the franchise agreement or related documents, this provision will take precedence, offering additional protection to the franchisee regarding their rights under state franchise laws.
This clause is particularly relevant for prospective Mrcool franchisees as it reinforces their rights and protections under state franchise laws, preventing them from inadvertently waiving these rights through standard documents or agreements. However, the effectiveness of this provision is contingent upon meeting the jurisdictional requirements of the relevant state law independently, without relying on this specific amendment.