Does the provision regarding waivers and disclaimers for Beard Papas franchisees supersede other terms in documents executed in connection with the 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 waivers and disclaimers signed by franchisees. This provision ensures 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 related to fraud in the inducement. It also prevents franchisees from disclaiming reliance on statements made by Beard Papas, its franchise sellers, or representatives.
This clause is designed to protect franchisees from unknowingly giving up their legal rights or being bound by disclaimers that could limit their ability to pursue legal action against Beard Papas if they believe they were misled or defrauded. The FDD explicitly states that this provision takes precedence over any other conflicting terms in any document signed in connection with the franchise agreement. This means that even if other documents contain language that appears to waive certain rights or disclaim reliance on representations, this specific provision will govern.
For a prospective Beard Papas franchisee, this is a beneficial safeguard. It ensures that they cannot inadvertently waive their rights under state franchise laws or disclaim reliance on statements made by the franchisor. This protection is particularly important in the context of potential fraud claims, where a franchisee might argue that they were induced to enter the agreement based on false or misleading information. The clause provides an added layer of security, ensuring that franchisees retain their legal recourse even if other documents suggest otherwise. However, franchisees should still carefully review all documents and seek legal advice to fully understand their rights and obligations.