Regarding The Standardx franchises in Hawaii, what effect do statements, questionnaires, or acknowledgements signed by the franchisee 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, specific protections are in place for franchisees in Hawaii regarding waivers and disclaimers. For The Standardx franchises subject to Hawaii's franchise registration/disclosure laws, any statement, questionnaire, or acknowledgement signed by the franchisee in connection with starting the franchise relationship will not waive claims under Hawaii's franchise law. This includes claims related to fraud in the inducement.
Furthermore, these documents cannot disclaim reliance on any statement made by The Standardx, any franchise seller, or anyone acting on behalf of The Standardx. This means that even if a franchisee signs a document suggesting they did not rely on certain statements, that disclaimer will not be effective under Hawaii law.
This provision is designed to protect franchisees by ensuring they retain their rights under state franchise law and can hold The Standardx accountable for representations made during the franchise sales process. This protection supersedes any conflicting terms in any document executed in connection with the franchise agreement, reinforcing the franchisee's rights under Hawaii law.