For Beard Papas franchisees, can a signed statement, questionnaire, or acknowledgement disclaim reliance on statements made by the franchisor?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
No statement, questionnaire or acknowledgement 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 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to the 2025 Beard Papas Franchise Disclosure Document, a franchisee cannot waive claims or disclaim reliance on franchisor statements through signed documents. Specifically, Item 23 states that no statement, questionnaire, or acknowledgement signed by a franchisee at the start of the franchise relationship can waive claims under state franchise law, including fraud in the inducement. It also specifies that these documents cannot disclaim reliance on statements made by Beard Papas, its sellers, or anyone acting on its behalf. This rule overrides any conflicting terms in other franchise documents. This protection is reiterated in the FDD Amendments for California, Hawaii, and Virginia.
This provision is highly favorable for prospective Beard Papas franchisees. It ensures that franchisees retain their legal rights and protections, regardless of any documents they sign during the initial phase of the franchise agreement. This prevents Beard Papas from using standardized forms to circumvent franchise laws or shield themselves from liability for misrepresentations.
For a prospective franchisee, this means that any assurances or promises made by Beard Papas during the sales process are not nullified by signing a standard acknowledgement or questionnaire. This protection extends to claims of fraud, ensuring that franchisees can seek legal recourse if they believe they were misled into investing in the franchise. This clause provides an additional layer of security, reinforcing the franchisee's ability to hold Beard Papas accountable for their representations and actions.