Regarding Zoomin Groomin, can a franchisee waive a fraud claim in the inducement through a signed document?
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 Zoomin Groomin's 2025 Franchise Disclosure Document, a franchisee cannot waive claims of fraud in the inducement through any signed document related to the commencement of the franchise relationship. This protection extends to claims arising under applicable state franchise laws. This means that even if a franchisee signs a statement, questionnaire, or acknowledgment that appears to waive such claims, that waiver will not be legally effective.
This provision is designed to protect franchisees from unknowingly or unintentionally giving up their legal rights. It ensures that franchisees retain the ability to pursue legal action if they believe they were fraudulently induced into entering the franchise agreement. This protection supersedes any conflicting terms in any document executed in connection with the Zoomin Groomin franchise.
It is important for prospective Zoomin Groomin franchisees to understand this protection, as franchise agreements can be complex and may contain language that could be interpreted as a waiver of rights. Franchisees should always carefully review all documents before signing and consult with an attorney if they have any questions or concerns. This non-waiver provision provides an additional layer of security for franchisees, ensuring that they are not bound by clauses that could unfairly limit their legal recourse.
However, franchisees should be aware that this protection may be subject to specific state laws and interpretations. For example, the New York addendum to the disclosure document specifies that rights and causes of action arising from Article 33 of the General Business Law of the State of New York remain in force. Similarly, the Maryland addendum states that the general release required as a condition of renewal, sale, and/or assignment/transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law. These state-specific provisions highlight the importance of understanding the applicable laws in the franchisee's jurisdiction.