Does the Stretch Zone franchise agreement allow franchisees to disclaim reliance on statements made by the franchisor or their representatives?
Stretch_Zone 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 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 91–99)
What This Means (2025 FDD)
According to the 2025 Stretch Zone Franchise Disclosure Document, the franchise agreement does not allow franchisees to disclaim reliance on statements made by the franchisor or their representatives. Specifically, addenda for Illinois, New York, Maryland, and Minnesota state that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor or their representatives. This provision overrides any other conflicting terms in any document related to the franchise agreement.
This means that Stretch Zone franchisees retain the right to pursue legal action based on misrepresentations or fraudulent statements made by the franchisor during the franchise sales process, regardless of any disclaimers they may have signed. This protection is particularly important for prospective franchisees as it ensures they are not bound by waivers that could prevent them from seeking recourse if they were misled.
It is important to note that these protections are specifically highlighted in addenda for Illinois, New York, Maryland, and Minnesota, suggesting that these states have specific franchise laws in place to protect franchisees. Franchisees in other states may not have the same explicit protections, so it is crucial to consult with a legal professional to understand the specific franchise laws in their state. This also means that the franchise agreement is subject to change based on the state where the franchisee is located.