What effect is prohibited for any statement, questionnaire, or acknowledgment signed by a Batteries Plus Bulbs franchisee regarding claims under state franchise law?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Exhibit G. 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 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 49–53)
What This Means (2025 FDD)
According to the 2025 Batteries Plus Bulbs FDD, certain addenda address statements, questionnaires, or acknowledgments signed by a franchisee. Specifically, for franchisees in Minnesota, Illinois, Virginia, and New York, any such document cannot waive claims under applicable state franchise law, including claims of fraud in the inducement. Additionally, these documents cannot disclaim reliance on statements made by Batteries Plus Bulbs, its franchise sellers, or anyone acting on the company's behalf. This provision takes precedence over any conflicting terms in other franchise-related documents.
This means that Batteries Plus Bulbs franchisees in these states retain their legal rights under state franchise laws, even after signing agreements or acknowledgments. For example, if a franchisee believes they were misled by Batteries Plus Bulbs during the franchise sales process, they can still pursue a claim for fraud, regardless of any statements they may have signed. Similarly, franchisees are not prevented from claiming they relied on information provided by the franchisor, even if they signed a document suggesting otherwise.
It is important for prospective Batteries Plus Bulbs franchisees to understand these protections, as they ensure that franchisees are not unknowingly giving up their legal rights. Franchisees should carefully review all documents before signing and consult with an attorney to fully understand their rights and obligations under the franchise agreement and applicable state laws. This type of clause is not uncommon in franchise agreements, as many states have franchise laws in place to protect franchisees from unfair practices.