In Virginia, can a 7 Brew franchisee disclaim reliance on statements made by the franchisor or its representatives in connection with the franchise agreement?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
- The following paragraph is added to the end of Item 17:
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 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to the 2025 7 Brew Franchise Disclosure Document, franchisees in Virginia cannot waive claims under state franchise law, including fraud in the inducement. They also cannot disclaim reliance on statements made by 7 Brew, any franchise seller, or anyone acting on 7 Brew's behalf. This protection is explicitly stated to supersede any other conflicting terms in any document related to the franchise agreement. This ensures that franchisees in Virginia retain their legal rights and recourse against misrepresentations or fraudulent statements made during the franchise sales process.
This provision is particularly important for prospective 7 Brew franchisees in Virginia as it prevents 7 Brew from enforcing clauses that might otherwise limit the franchisee's ability to bring legal action based on misleading information. It reinforces the franchisee's right to rely on the information provided by 7 Brew and its representatives during the decision-making process. This protection helps to ensure transparency and fairness in the franchise relationship.
In practical terms, this means that if a 7 Brew franchisee in Virginia believes they were induced into signing the franchise agreement based on false or misleading statements made by 7 Brew, they can pursue legal remedies without being barred by a disclaimer of reliance. This provides an added layer of security and legal recourse for franchisees operating in Virginia, aligning with the state's franchise laws aimed at protecting franchisees' rights.