Is the franchisee prohibited from claiming reliance on representations about the Bb.Q Chicken business that are not within the Franchise Agreement?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee (or developer) 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 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to the 2025 Bb.Q Chicken Franchise Disclosure Document, franchisees in most states cannot waive claims of fraud in the inducement based on statements made by the franchisor or its representatives. However, this protection does not extend to franchisees in California, Maryland, and Washington.
Specifically, Exhibit J of the FDD states that no statement signed by a franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor. This provision supersedes any other term in any document related to the franchise agreement.
This acknowledgement aims to protect franchisees from being bound by clauses that might prevent them from pursuing legal recourse if they believe they were misled during the franchise sales process. However, franchisees should be aware that this protection is explicitly not applicable in California, Maryland, and Washington, as stated in the disclosure.