In North Dakota, what effect do statements, questionnaires, or acknowledgements signed by The Standardx franchisees have on waiving claims under state franchise law or disclaiming reliance on statements made by the franchisor?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
The following provision applies only to franchisees and franchises that are subject to state franchise registration/disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin:
No statement, questionnaire, or acknowledgement signed or agreed to by you 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 us, any franchise seller, or any other person acting on our behalf. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 18 — OTHER INCOME (LOSS), NET (FDD pages 187–399)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, in North Dakota, any statement, questionnaire, or acknowledgement signed by a franchisee in connection with starting the franchise relationship does not waive claims under state franchise law. This includes claims of fraud. These documents also cannot disclaim reliance on statements made by The Standardx, its franchise sellers, or anyone acting on its behalf. This rule overrides any other conflicting terms in any document related to the franchise agreement.
This protection for franchisees in North Dakota means that even if a franchisee signs a document that seems to waive their rights or disclaim reliance on the franchisor's statements, those waivers or disclaimers will not be legally effective. This is particularly important in cases where a franchisee believes they were misled or defrauded during the franchise sales process. The franchisee retains the right to pursue legal claims based on those misrepresentations, regardless of what they may have signed.
This provision is designed to protect franchisees from unknowingly giving up their legal rights. It ensures that franchisees can hold The Standardx accountable for its representations and conduct, even after the franchise agreement is signed. This type of protection is not uniform across all states, so it's a significant benefit for franchisees operating in North Dakota.