Regarding the commencement of a Petro Stopping Center franchise, can a franchisee's statement, questionnaire, or acknowledgment waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on any representations?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
No statement, questionnaire or acknowledgment 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 any 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 4 — Other Owners: (FDD pages 228–302)
What This Means (2025 FDD)
According to the 2025 Petro Stopping Center FDD, in certain states, a franchisee's statement, questionnaire, or acknowledgment cannot waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on any representations made by the franchisor or its representatives. This protection is specifically highlighted in addenda for franchisees subject to franchise disclosure laws in California, Hawaii, Indiana, Maryland, Michigan, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. These addenda explicitly state that no document signed in connection with the franchise commencement can waive such claims or disclaim reliance on franchisor statements. This provision overrides any conflicting terms in other franchise documents. Illinois and Minnesota also have similar protections in place for franchisees. For example, Minnesota Statutes prohibit Petro Stopping Center from requiring litigation to be conducted outside Minnesota. Also, Minnesota law provides franchisees with certain termination and nonrenewal rights, requiring specific notice periods for termination and non-renewal of the Franchise Agreement. Indiana law also prohibits requiring a franchisee to prospectively agree to a release or waiver relieving any person from liability imposed by the Indiana Franchise Practices Act. Washington also has similar protections in place for franchisees. A release or waiver of rights executed by a franchisee may not include rights under the Washington Franchise Investment Protection Act or any rule or order thereunder except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel.