Does the Beehive Homes franchise agreement disclaim representations made in the franchise disclosure document?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee, including its Equity Owner(s), if applicable, jointly and severally hereby represent that they have received this Bee Hive Homes Franchise Agreement at least seven (7) calendar days before the date on which this Franchise Agreement is executed; acknowledge that at the time it was received it was complete in all material respects; acknowledge that they have read and understand all obligations being undertaken; acknowledge that they have had the opportunity to consult with their attorney and any other advisors with respect thereto; and acknowledge that they are entering into this Agreement as a result of their own independent investigation; and not as a result of any representations about the franchise made by us or any of our affiliates, associates, agents, representatives, independent contractors, or franchisees that are contrary to the terms set forth in this Agreement, or in the franchise disclosure document.
IN WITNESS WHEREOF, the parties hereto, being duly authorized, have executed this Agreement as of the Effective Date.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to the 2025 Beehive Homes Franchise Disclosure Document, the franchise agreement includes an acknowledgment section where the franchisee confirms they are entering the agreement based on their own independent investigation and not due to representations made by Beehive Homes or its representatives that contradict the franchise agreement or the franchise disclosure document. This means Beehive Homes aims to limit its liability for any claims arising from statements made outside of these official documents.
However, for franchises in Minnesota, the FDD states that no statement signed by a franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Beehive Homes or its representatives. This Minnesota-specific provision supersedes any other conflicting terms in any document related to the franchise agreement. Therefore, while Beehive Homes generally seeks to limit reliance on external representations, Minnesota franchisees retain their rights under state law.
This acknowledgment and the Minnesota addendum have significant implications for prospective franchisees. Franchisees should ensure their decisions are based on thorough due diligence and a clear understanding of the franchise agreement and FDD. The Minnesota addendum provides additional protection, ensuring franchisees in that state can still pursue claims based on misrepresentations, despite any acknowledgments to the contrary in the franchise agreement.