Are the representations made by Belocal in the franchise disclosure document disclaimed by the franchise agreement?

According to Belocal's 2025 Franchise Disclosure Document, the franchise agreement does not allow for disclaimers of representations made by Belocal or its agents, nor can franchisees waive reliance on these representations. Specifically, several addenda included in Item 22 of the FDD state that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law, including fraud, or disclaim reliance on statements made by Belocal or its representatives. This provision supersedes any other conflicting terms in any document related to the franchise agreement. These protections are explicitly mentioned in addenda for Illinois, North Dakota, Virginia, Indiana, Michigan, Rhode Island, South Dakota, and Wisconsin.

This means that Belocal franchisees are entitled to rely on the representations made by Belocal during the franchise sales process and in the FDD itself. The franchise agreement cannot be used to nullify these representations or prevent a franchisee from claiming they relied on them, especially in cases of fraud or misrepresentation. This is a significant protection for franchisees, ensuring that Belocal is accountable for the information they provide to potential franchisees.

For prospective franchisees, this information is reassuring. It confirms that Belocal cannot use the franchise agreement to retroactively deny or disclaim statements made to induce them into signing the agreement. This protection is particularly important in states with franchise laws designed to protect franchisees from overreach by franchisors. Franchisees should still conduct their own due diligence and seek legal counsel, but these provisions offer an additional layer of security against potential misrepresentations or fraud.