For Best Brains franchises, can a franchisee disclaim reliance on statements made by the franchisor or their representatives through a signed statement?
Best_Brains 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 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to the 2025 Best Brains Franchise Disclosure Document, a franchisee cannot disclaim reliance on statements made by Best Brains or its representatives through a signed statement. Specifically, any statement, questionnaire, or acknowledgment signed by a franchisee at the start of the franchise relationship cannot waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor, franchise seller, or anyone acting on the franchisor's behalf. This provision takes precedence over any conflicting terms in any document related to the franchise agreement.
This means that even if a Best Brains franchisee signs a document that appears to disclaim reliance on the franchisor's statements, that disclaimer will not be legally effective. This protects the franchisee from being bound by potentially misleading or inaccurate statements made during the franchise sales process. It ensures that franchisees retain their rights to pursue claims based on misrepresentations or fraud, regardless of any disclaimers they may have signed.
Several state-specific addenda reinforce this protection. For example, the Illinois addendum states that any provision requiring a franchisee to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void. Similarly, the Washington addendum specifies that no statement can waive claims under state franchise law or disclaim reliance on the franchisor's statements. These addenda highlight the importance of state franchise laws in protecting franchisees' rights and ensuring fair dealing by franchisors.
Prospective Best Brains franchisees should be aware of these protections and understand that they cannot inadvertently waive their rights through signed statements or acknowledgments. This provision promotes transparency and accountability in the franchise relationship, allowing franchisees to make informed decisions based on accurate information.