Does the Beauty Bungalows franchise agreement allow a franchisee to disclaim reliance on statements made by the franchisor or its representatives through signed documents?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving and 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.
Section 18.11 of the Franchise Agreement shall not apply to Washington Franchisees.
WISCONSIN
The Wisconsin Fair Dealership Law, Chapter 135 of the Wisconsin Statutes supersedes any provision of the Franchise Agreement if such provision is in conflict with that law. The Franchise Disclosure Document, the Franchise Agreement and the Supplemental Agreements are amended accordingly.
Source: Item 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
According to Beauty Bungalows's 2025 Franchise Disclosure Document, the franchise agreement does not allow a franchisee to disclaim reliance on statements made by the franchisor or its representatives. Specifically, any statement, questionnaire, or acknowledgment signed by a franchisee in connection with starting the franchise relationship cannot waive claims under applicable state franchise law, including claims related to fraud in the inducement.
This means that even if a franchisee signs a document that seems to disclaim reliance on the franchisor's statements, that disclaimer will not be legally effective. This provision is designed to protect franchisees from being misled by the franchisor during the franchise sales process. It ensures that franchisees can still pursue legal action if they believe they were induced into the franchise agreement based on false or misleading information provided by Beauty Bungalows or its representatives.
This protection supersedes any other conflicting terms in any document executed as part of the franchise agreement. However, it's important to note that Section 18.11 of the Franchise Agreement does not apply to franchisees in Washington, and the Wisconsin Fair Dealership Law supersedes any conflicting provisions in the Franchise Agreement for Wisconsin franchisees. Prospective franchisees should carefully review the entire Franchise Agreement and any applicable state addenda to fully understand their rights and obligations.