In which states does the 'No Waiver of Disclaimer of Reliance' provision apply to Beef O Bradys franchisees?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
REQUIRED BY THE STATE OF CALIFORNIA, HAWAII, ILLINOIS, INDIANA, MARYLAND, MICHIGAN, MINNESOTA, NEW YORK, NORTH DAKOTA, RHODE ISLAND, VIRGINIA, WASHINGTON AND WISCONSIN.
No Waiver of Disclaimer of Reliance in Certain States. The following provision applies only to franchisees and franchises that are subject to the state franchise disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, Virginia, Washington and Wisconsin:
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 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 any 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 66–330)
What This Means (2025 FDD)
According to the 2025 Beef O Bradys Franchise Disclosure Document, the 'No Waiver of Disclaimer of Reliance' provision applies to franchisees and franchises subject to state franchise disclosure laws in specific states. This provision ensures that franchisees in these states retain their rights under applicable state franchise laws, preventing them from waiving claims, including those related to fraud in the inducement, or disclaiming reliance on statements made by the franchisor or its representatives.
Specifically, this provision is applicable in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, Virginia, Washington, and Wisconsin. This means that any statement, questionnaire, or acknowledgment signed by a Beef O Bradys franchisee in these states cannot waive their rights to sue for violations of franchise law or disclaim reliance on the franchisor's representations.
This protection is significant for prospective Beef O Bradys franchisees in these states, as it reinforces their ability to seek legal recourse if they believe they have been misled or defrauded during the franchise sales process. It also supersedes any conflicting terms in other documents executed in connection with the franchise agreement, providing a clear legal standard for these states. Franchisees operating outside these specified states may not have the same level of protection under this specific provision.