If a franchisee is induced to enter into a franchise contract by the franchisor's fraudulent misrepresentation,the franchisor may be liable for damages.

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If a party is induced to enter into a contract by fraudulent misrepresentation, the other party may be liable for damages. This principle also applies to franchise contracts, so if a franchisor uses fraudulent misrepresentation to induce a franchisee to sign a contract, the franchisor may be held liable for any resulting damages.

If a Franchisee Is Induced to Enter into a Franchise