For a Belocal franchise in California, what does the amendment supersede?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- g. 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.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the amendment for California franchises includes a specific provision that addresses statements, questionnaires, or acknowledgments signed by the franchisee at the start of the franchise relationship. This provision ensures that franchisees do not waive any claims under applicable state franchise law, including claims related to fraud in the inducement. It also protects the franchisee's right to rely on statements made by the franchisor or their representatives.
Specifically, the FDD states that this provision supersedes any other term of any document executed in connection with the franchise. This means that if any other part of the franchise agreement or related documents conflicts with this protection for the franchisee, this particular provision will take precedence.
For a prospective Belocal franchisee in California, this is a beneficial safeguard. It prevents the franchisor from using standard contract language to inadvertently or intentionally limit the franchisee's legal rights and protections under California franchise law. It ensures that franchisees can pursue claims of fraud or misrepresentation without being hindered by waivers or disclaimers in the franchise agreement.