Does the Belocal franchise agreement allow a franchisee to disclaim reliance on statements made by the franchisor or its representatives?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
The following statement is added to the Agreement: 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 other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
FRANCHISOR: N2 Franchising, Inc. a Delaware corporation
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to the 2025 Belocal Franchise Disclosure Document, the franchise agreement includes provisions that address the franchisee's reliance on statements made by Belocal or its representatives. For franchisees in California and New York, the agreement explicitly states that no statement, questionnaire, or acknowledgment signed by the franchisee can disclaim reliance on any statement made by Belocal or its representatives. This is designed to protect franchisees from unknowingly waiving their rights based on information provided during the franchise sales process.
For franchise agreements outside of Washington, the franchisee represents that they do not rely on any representation or statement made by Belocal or its representatives regarding the agreement. This acknowledgement is made with the understanding that the franchisee has had the opportunity to consult with an attorney and has carefully read and understands the agreement's provisions. This clause aims to ensure that franchisees enter the agreement with full knowledge and independent counsel, reducing the potential for future claims based on misrepresentation.
These clauses reflect a balance between protecting the franchisee's rights and ensuring that the franchisee has independently verified the information necessary to make an informed decision. Prospective franchisees should carefully review these provisions with their legal counsel to fully understand their implications and rights within the Belocal franchise system.