If a Spray Net franchisee's owner/principal commits fraud in the establishment of the franchised business, is there an opportunity to cure?
Spray_Net 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 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 75–219)
What This Means (2025 FDD)
According to the 2025 Spray Net Franchise Disclosure Document, the franchise agreement cannot waive claims related to state franchise law, including fraud in the inducement. This means that if a Spray Net franchisee believes they were fraudulently convinced to enter the franchise agreement, they retain the right to pursue legal action, regardless of any statements or acknowledgments they may have signed.
This protection is particularly important for prospective Spray Net franchisees as it ensures they are not bound by clauses that prevent them from seeking legal recourse if they believe they were misled during the franchise sales process. This clause does not specify a cure period, but rather invalidates any waiver of claims related to fraud.
The Maryland and Minnesota addenda to the Spray Net franchise agreement reinforce this protection by stating that no statement signed by a franchisee can waive claims under state franchise law, including fraud in the inducement. These addenda highlight the importance of franchisees understanding their rights and seeking legal advice if they suspect they were fraudulently induced into signing the franchise agreement.