Can a franchisee disclaim reliance on statements made by the franchisor or their representatives when commencing a Zoomin Groomin franchise?
Zoomin_Groomin 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 17 — g. of the Disclosure Document is modified to state that, in addition to the grounds for immediate termination specified in Item 17.h., the franchisor can terminate upon written notice and a 60 day opportunity to cure for a breach of the Franchise Agreement. (FDD pages 51–65)
What This Means (2025 FDD)
According to the 2025 Zoomin Groomin FDD, in certain states, franchisees cannot waive claims or disclaim reliance on statements made by the franchisor or their representatives. Specifically, addenda for Washington, New York, North Dakota, Illinois, Maryland, and California 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. These provisions supersede any other conflicting terms in any document related to the franchise agreement. This protection is particularly relevant in states with franchise-specific laws designed to protect franchisees.
For a prospective Zoomin Groomin franchisee, this means that any attempt by the franchisor to include clauses that prevent the franchisee from claiming they relied on the franchisor's statements during the franchise sales process may be unenforceable in these states. This is especially important if the franchisee believes they were misled or provided false information that induced them to invest in the franchise. The franchisee retains the right to pursue legal action based on such misrepresentations, despite any disclaimers they may have signed.
In California, this protection is reinforced, stating that no disclaimer can be interpreted as waiving fraud claims or disclaiming reliance on statements that induced the franchisee's investment. Furthermore, any statements signed by the franchisee are deemed based on their understanding of the law and facts at the time of the investment decision. This ensures that franchisees are not held accountable for misunderstandings or misrepresentations made during the initial stages of the franchise relationship. This protection is a critical safeguard for franchisees, ensuring they are not bound by waivers that could compromise their legal rights in cases of fraud or misrepresentation.