Regarding the commencement of a Petro Stopping Center franchise relationship in Indiana, can a franchisee's signed statement, questionnaire, or acknowledgment waive claims under applicable state franchise law, including fraud in the inducement?
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 Petro Stopping Center's 2025 Franchise Disclosure Document, a franchisee in Indiana cannot waive claims under applicable state franchise law, including claims of fraud in the inducement, through any signed statement, questionnaire, or acknowledgment made in connection with starting the franchise relationship. This protection is explicitly stated in an addendum to the franchise agreement that applies to franchisees subject to state franchise disclosure laws in Indiana. This provision overrides any other conflicting terms in any document related to the franchise agreement.
This means that even if a franchisee signs a document that appears to waive their rights, that waiver will not be legally enforceable in Indiana with respect to claims arising under state franchise law, including fraud. This addendum ensures that franchisees retain their legal rights and protections under Indiana law, regardless of any agreements they may sign during the initial phase of the franchise relationship.
This type of provision is included to protect franchisees from unknowingly or unintentionally giving up their legal rights. It reflects a regulatory effort to balance the power dynamic between franchisors and franchisees, ensuring that franchisees are not pressured into waiving important legal protections. Prospective franchisees should carefully review all addenda and state-specific provisions in the franchise agreement to understand their rights and obligations fully.