What is the effect of a statement, questionnaire, or acknowledgement signed by a Spray Net franchisee regarding claims under state franchise law?

According to Spray Net's 2025 Franchise Disclosure Document, a statement, questionnaire, or acknowledgment signed by a franchisee in connection with starting the franchise relationship does not waive any claims under applicable state franchise law. This includes claims related to fraud in the inducement. Additionally, these documents cannot disclaim reliance on any statement made by Spray Net, its franchise sellers, or anyone acting on Spray Net's behalf. This rule overrides any other conflicting terms in any document signed as part of the franchise agreement. This protection is specifically noted in addenda for Illinois, Maryland and Minnesota.

This provision is beneficial for prospective Spray Net franchisees because it ensures that they retain their rights under state franchise laws, even after signing agreements or acknowledgments. It prevents Spray Net from using these documents to shield itself from liability for misrepresentations or violations of franchise laws. Franchisees are protected from inadvertently waiving their legal rights during the initial stages of the franchise relationship.

Many states have franchise laws to protect franchisees from unfair practices by franchisors. The inclusion of such a clause in the Spray Net franchise agreement, and specifically highlighted in state-specific addenda, reinforces the franchisor's commitment to complying with these laws and ensuring franchisees' rights are protected. This type of provision is not uncommon in franchise agreements, as it reflects a balance between the franchisor's need for standardized agreements and the franchisee's need for legal protection under state laws.