What is the purpose of the 'Additional Acknowledgment' section added to the B Bops Franchise Agreement?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
Pursuant to Minnesota Statutes Section 80C.21 and Minnesota Rule Part 2860.4400J, this Section shall not in any way abrogate or reduce any rights of Franchisee as provided for in Minnesota Statutes, Chapter 80C.
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- The Agreement is hereby amended by addition of the following provision as a new Section 44 immediately following the end of Section 43:
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- ADDITIONAL ACKNOWLEDGMENT. 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 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the 'Additional Acknowledgment' section in the franchise agreement is designed to protect the franchisee's rights under applicable state franchise laws. Specifically, it ensures that no statement, questionnaire, or acknowledgment signed by the franchisee can waive claims related to state franchise law, including claims of fraud in the inducement.
This provision also prevents the franchisee from disclaiming reliance on statements made by B Bops, its sellers, or representatives. Essentially, B Bops is ensuring that franchisees cannot inadvertently give up their legal rights or claims through standard paperwork at the beginning of the franchise relationship. This section explicitly overrides any other conflicting terms in any document executed in connection with the franchise agreement.
For a prospective B Bops franchisee, this is a beneficial clause. It offers a degree of protection against unintentionally waiving legal rights or being bound by disclaimers that could limit their ability to pursue claims against the franchisor. This type of clause is not universally included in franchise agreements, so its presence suggests that B Bops is taking steps to ensure franchisees retain certain legal protections.