Can a Beem Light Sauna franchisee disclaim reliance on any statement by signing a statement, questionnaire, or acknowledgment?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
18.6 No Waiver or Disclaimer of Reliance in Certain States. The following provision applies only to franchisees and Studios that are subject to the state franchise disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin:
No statement, questionnaire, or acknowledgement signed or agreed to by you 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 us, any franchise seller, or any other person acting on behalf of us. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, in certain states, a franchisee cannot disclaim reliance on statements made by the franchisor, franchise seller, or anyone acting on their behalf by signing a statement, questionnaire, or acknowledgment. This protection applies specifically to franchisees and studios subject to state franchise disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin.
This provision ensures that Beem Light Sauna franchisees in these states retain their rights under applicable state franchise laws, including the right to claim fraud in the inducement. It means that any document a franchisee signs during the commencement of the franchise relationship cannot waive these rights or disclaim reliance on statements made by the franchisor or its representatives. This clause is designed to protect franchisees from unknowingly relinquishing their legal rights based on potentially misleading information.
The FDD explicitly states that this provision supersedes any other conflicting terms in any document executed in connection with the franchise. Therefore, even if other agreements contain language that suggests a waiver or disclaimer of reliance, this specific clause will take precedence in the listed states, reinforcing the franchisee's protections under state franchise laws. This ensures that Beem Light Sauna franchisees in these states maintain their ability to pursue claims based on misrepresentations or fraud, regardless of any signed documents.