What does the 'No Waiver or Disclaimer of Reliance' provision supersede regarding Stretch Zone franchises in applicable states?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
(c) Release of Claims
If you are required in the Franchise Agreement to sign a release of claims or to acknowledge facts that would negate or remove from judicial review any statement, misrepresentation or action that would violate the Act, or a rule or order under the Act, the release exclude claims arising under the Act, and the acknowledgments are void as to claims under the Act.
- Each provision of this Amendment is effective only to the extent that the jurisdictional requirements of the Acts applicable to the provision are met independent of this Amendment. This Amendment has no force or effect if the jurisdictional requirements are not independently met.
Source: Item 8 — Receipts. Any sale made must be in compliance with § 683(8) of the Franchise Sale Act (N.Y. Gen. Bus. L. § 680 et seq.), which describes the time period a Franchise Disclosure Document (offering prospectus) must be provided to a prospective franchisee before a sale may be made. New York law requires a franchisor to provide the Franchise Disclosure Document at the earliest of the first personal meeting or ten (10) business days before the execution of the franchise or other agreement or the payment of any consideration that relates to the franchise relationship. (FDD pages 99–263)
What This Means (2025 FDD)
According to the 2025 Stretch Zone FDD, the Rhode Island Addendum to the Franchise Agreement addresses specific legal considerations within that state. If the Franchise Agreement requires a franchisee to sign a release of claims or acknowledge facts that would negate or remove from judicial review any statement, misrepresentation, or action violating the Rhode Island Franchise Investment Act, the release excludes claims arising under the Act, and the acknowledgments are void as to claims under the Act. This means that franchisees in Rhode Island cannot waive their rights to pursue claims under the Rhode Island Franchise Investment Act, regardless of what the standard Franchise Agreement might state.
This provision ensures that Stretch Zone franchisees in Rhode Island retain their legal rights and protections under state law, even if certain clauses in the franchise agreement might suggest otherwise. It prevents Stretch Zone from enforcing waivers or disclaimers that would undermine the franchisee's ability to seek legal recourse for violations of the Rhode Island Franchise Investment Act.
This addendum is effective only if the jurisdictional requirements of the Acts applicable to the provision are met independently of this Amendment. This means that the amendment has no force or effect if the jurisdictional requirements are not independently met. This ensures that the specific legal requirements are satisfied before the protections come into effect.