In which states does The Standardx franchise agreement explicitly state that no waiver or disclaimer of reliance is permitted regarding claims under state franchise law?
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 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 Hyatt, any franchise seller, or any other person acting on behalf of Hyatt. 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, the franchise agreement explicitly states that no waiver or disclaimer of reliance is permitted regarding claims under state franchise law for franchisees and franchises 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, and Wisconsin.
This means that in these states, any statement, questionnaire, or acknowledgement signed by the franchisee at the start of the franchise relationship cannot waive claims under state franchise law, including claims of fraud. Franchisees in these states also cannot disclaim reliance on statements made by The Standardx, its franchise sellers, or anyone acting on their behalf. This provision overrides any conflicting terms in any document related to the franchise agreement.
For prospective The Standardx franchisees in these specified states, this is a beneficial provision. It protects their right to pursue legal claims under state franchise laws, ensuring they cannot inadvertently waive these rights or disclaim reliance on statements made by The Standardx during the franchise sales process. This can be particularly important in cases of alleged misrepresentation or fraud.