Under the California amendment, can a Belocal franchisee disclaim reliance on statements made by the franchisor or their representatives?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
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, any attempt by a Belocal franchisee in California to disclaim reliance on statements made by Belocal or its representatives is void and unenforceable. This protection extends to statements made by the franchisor, franchise seller, or anyone acting on behalf of the franchisor.
This means that Belocal franchisees in California cannot waive their right to make claims based on statements made to them by Belocal during the franchise sales process, including claims of fraud. This applies to any statement, questionnaire, or acknowledgment signed by the franchisee when starting the franchise relationship.
This provision is designed to protect franchisees from being bound by clauses that might prevent them from pursuing legal action based on misrepresentations or false promises made by Belocal. This protection supersedes any other conflicting terms in any document related to the franchise agreement, strengthening the franchisee's position under California law.