What is the effect of a statement signed by a Beehive Homes franchisee regarding fraud in the inducement?

According to Beehive Homes' 2025 Franchise Disclosure Document, any statement, questionnaire, or acknowledgment signed by a franchisee in connection with starting the franchise relationship will not waive claims under state franchise law, including claims of fraud in the inducement. This means that even if a franchisee signs a document that seems to waive their rights, they still retain the right to pursue legal action if they believe they were fraudulently induced into the franchise agreement.

This provision protects franchisees from inadvertently giving up their legal rights through standard paperwork. It ensures that franchisees can still claim they were misled, even if they signed something that could be interpreted as a waiver. This protection extends to reliance on statements made by Beehive Homes, franchise sellers, or anyone acting on behalf of Beehive Homes.

This clause supersedes any other conflicting terms in any document executed in connection with the franchise agreement. This means that this specific protection against waiving fraud claims takes precedence over any other clause that might suggest otherwise. This is a significant benefit for prospective franchisees, as it provides an additional layer of security and recourse in case of misrepresentation or fraud.