Does the Virginia Addendum for Belocal franchises supersede any other term of any document executed in connection with the franchise regarding the waiver of claims or disclaiming reliance on statements?
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, the Virginia Addendum includes a provision that addresses the waiver of claims and disclaiming reliance on statements. Specifically, the addendum states that no statement, questionnaire, or acknowledgment signed by a franchisee in connection with starting the franchise can waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Belocal or its representatives.
This provision in the Virginia Addendum is designed to protect franchisees by ensuring they retain their rights under Virginia franchise law. It prevents Belocal from using standard documents to inadvertently or intentionally limit a franchisee's ability to bring legal claims, especially those related to misrepresentation or fraud. This protection is particularly relevant in Virginia due to the Virginia Retail Franchising Act.
Furthermore, the Virginia Addendum explicitly states that this provision supersedes any other conflicting terms in any document related to the franchise agreement. This means that if any other agreement or document contains language that could be interpreted as a waiver of these rights, the Virginia Addendum takes precedence, reinforcing the franchisee's legal protections under Virginia law. This ensures that Belocal franchisees in Virginia are not bound by clauses that might otherwise limit their legal recourse.