Does the Belocal franchise agreement disclaim representations made by the Franchisor in the franchise disclosure document furnished to the Franchisee?

According to Belocal's 2025 Franchise Disclosure Document, the franchise agreement does not allow for disclaimers of representations made by the franchisor. Specifically, the agreement includes a provision that any statement, questionnaire, or acknowledgment signed by a franchisee cannot waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor or its representatives. This clause supersedes any other conflicting terms in any document related to the franchise agreement.

This means that Belocal franchisees retain their legal rights to pursue claims based on misrepresentations or fraudulent statements made by Belocal during the franchise sales process. This protection extends to reliance on the Franchise Disclosure Document (FDD) itself, ensuring that franchisees can hold Belocal accountable for the information provided in the FDD.

This type of provision is favorable for prospective franchisees, as it prevents Belocal from using contractual language to shield itself from liability for inaccurate or misleading statements. It aligns with franchise laws in many states that aim to protect franchisees from overreaching franchisors. Franchisees should still conduct thorough due diligence and seek legal counsel to fully understand their rights and obligations, but this clause provides an additional layer of security.