For Beard Papas franchisees, what effect does a signed statement, questionnaire, or acknowledgement have on waiving claims under state franchise law?

According to the 2025 Beard Papas FDD, a signed statement, questionnaire, or acknowledgement by a franchisee in connection with starting the franchise relationship does not waive claims under state franchise law. Specifically, such documents cannot waive any claims related to applicable state franchise law, including claims of fraud in the inducement. Furthermore, these documents cannot disclaim reliance on any statement made by Beard Papas, its franchise sellers, or anyone acting on behalf of Beard Papas. This provision overrides any other conflicting terms in any document related to the franchise agreement. This protection is reiterated in the California, Hawaii, and Virginia FDD Amendments.

This means that even if a prospective Beard Papas franchisee signs a document that appears to waive their rights or disclaim reliance on statements made by the franchisor, those waivers or disclaimers will not be legally effective regarding state franchise law. This is a significant protection for franchisees, as it prevents Beard Papas from using such documents to shield itself from liability for misrepresentations or other violations of state franchise laws.

Several states have specific amendments reinforcing franchisee rights. For example, in Illinois, the law dictates that any provision designating jurisdiction and venue outside of Illinois is void, although arbitration outside the state may be permissible. In Washington, the Washington Franchise Investment Protection Act may supersede the franchise agreement, particularly in areas of termination and renewal. Similarly, in Wisconsin, the Wisconsin Fair Dealership Law may affect the termination provisions of the Franchise Agreement. These state-specific amendments highlight the importance of franchisees understanding their rights under local laws, regardless of what the standard franchise agreement may state.

Prospective Beard Papas franchisees should be aware of these protections and consult with an attorney to fully understand their rights under the franchise agreement and applicable state laws. This ensures that they are not unknowingly waiving any legal claims or remedies.