Does the provision regarding waiver of claims and disclaiming reliance supersede other terms in documents executed in connection with the Beard Papas franchise?
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 specific provision addresses the enforceability of waivers and disclaimers signed by franchisees. This provision explicitly states that no statement, questionnaire, or acknowledgment signed by a franchisee at the start of their franchise relationship can waive claims under state franchise law, including claims of fraud in the inducement. It also prevents franchisees from disclaiming reliance on statements made by Beard Papas, its representatives, or franchise sellers. This is a protection for the franchisee.
The FDD emphasizes that this particular provision supersedes any other conflicting terms found in any document related to the franchise agreement. This means that even if other documents contain language that could be interpreted as a waiver of rights or a disclaimer of reliance, this specific provision takes precedence. This ensures that franchisees retain their rights and protections under applicable state franchise laws, regardless of other contractual language.
Several state-specific amendments included in the FDD reinforce this concept. For example, amendments for Michigan, California, North Dakota, and Rhode Island highlight specific state laws that protect franchisees from unfair provisions, including waivers of rights. These amendments further solidify the franchisee's ability to pursue claims and remedies, even if other parts of the franchise agreement might suggest otherwise. This is a beneficial term for the franchisee.