What right does a Beard Papas franchisee waive regarding the terms of the agreement?
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.
Michigan FDD Amendment
Amendments to the Beard Papa's Franchise Disclosure Document
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- THE STATE OF MICHIGAN PROHIBITS CERTAIN UNFAIR PROVISIONS THAT ARE SOMETIMES IN FRANCHISE DOCUMENTS. IF ANY OF THE FOLLOWING PROVISIONS ARE IN THESE FRANCHISE DOCUMENTS, THE PROVISIONS ARE VOID AND CANNOT BE ENFORCED AGAINST YOU.
- A. A prohibition of your right to join an association of franchisees.
- B. A requirement that you assent to a release, assignment, novation, waiver or estoppel that deprives you of rights and protections provided in this act. This shall not preclude you, after entering into a Franchise Agreement, from settling any and all claims.
- C. A provision that permits us to terminate a franchise before the expiration of this term except for good cause. Good cause shall include your failure to comply with any lawful provision of the Franchise Agreement and to cure the failure after being given written notice of the failure and a reasonable opportunity, which in no event need be more than 30 days, to cure the failure.
- D. A provision that permits us to refuse to renew a franchise without fairly compensating you by repurchase or other means for the fair market value at the time of expiration of your inventory, supplies, equipment, fixtures and furnishings. Personalized materials that have no value to us and inventory,
supplies, equipment, fixtures and furnishings not reasonably required in the conduct of the franchise business are not subject to compensation. This subsection applies only if: (a) the term of the franchise is less than five years, and (b) you are prohibited by the Franchise Agreement or other agreement from continuing to conduct substantially the same business under another trademark, service mark, trade name, logotype, advertising or other commercial symbol in the same area subsequent to the expiration of the franchise or you do not receive at least six months advance notice of our intent not to renew the franchise.
- E.
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, a Michigan franchisee does not waive certain rights and protections provided under the state's franchise laws. Specifically, any statement, questionnaire, or acknowledgement signed by a franchisee cannot waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Beard Papas or its representatives. This protection supersedes any conflicting terms in other documents related to the franchise agreement.
Furthermore, the Michigan FDD Amendment explicitly states that certain provisions, if present in the franchise documents, are void and unenforceable against the franchisee. These include prohibitions on joining a franchisee association, requirements to assent to releases or waivers that deprive the franchisee of rights and protections under the act, provisions allowing termination before the term's expiration without good cause, and provisions allowing Beard Papas to refuse renewal without fair compensation for the franchisee's assets.
This amendment ensures that Michigan franchisees retain key legal rights and protections, preventing Beard Papas from enforcing potentially unfair or restrictive clauses that might otherwise be included in the franchise agreement. This is a significant benefit for prospective franchisees in Michigan, as it provides a safeguard against overreaching contractual terms and ensures a fairer balance of power between the franchisor and franchisee.