Does the Belocal franchise agreement allow a franchisee to disclaim reliance on any statement made by the franchisor, franchise seller, or other person acting on behalf of the franchisor?

According to Belocal's 2025 Franchise Disclosure Document, the franchise agreement does not allow a franchisee to disclaim reliance on statements made by the franchisor, franchise seller, or anyone acting on their behalf. Specifically, several state-specific addenda included in Item 22 of the FDD explicitly state that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor or its representatives. This provision is designed to supersede any other conflicting terms in any document related to the franchise agreement. These protections are included in addenda for franchisees in California, Illinois, Indiana, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, and Wisconsin.

This means that Belocal franchisees in these states retain the right to pursue legal claims based on misrepresentations or fraudulent statements made during the franchise sales process, even if they have signed documents that appear to waive such claims. This is a significant protection for franchisees, as it prevents Belocal from using contractual language to shield itself from liability for misleading or inaccurate information provided to potential franchisees. It ensures that franchisees can hold Belocal accountable for the accuracy and truthfulness of its representations.

However, it's important to note that these protections are specifically mentioned for franchisees in certain states. Franchisees in other states may not have the same explicit contractual protections against disclaiming reliance on the franchisor's statements. Therefore, prospective Belocal franchisees should carefully review the franchise agreement and any applicable state laws to understand their rights and obligations fully. Consulting with an attorney experienced in franchise law is advisable to ensure a complete understanding of the legal landscape in their specific jurisdiction.