What section of the Best Brains Franchise Agreement is deleted regarding punitive damages?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
- 10.E. Punitive Damages Waiver. Section 10.E. of the Franchise Agreement is deleted. The following is added to the Franchise 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 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, Section 10.E. of the Franchise Agreement, which pertains to punitive damages, is deleted. In its place, the following is added to the Franchise 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."
This change means that franchisees are not required to waive claims related to state franchise law or disclaim reliance on franchisor statements when starting their franchise. This protects the franchisee's right to pursue legal claims, including those related to fraud, and ensures that franchisees can rely on the franchisor's representations.
This modification to the Best Brains franchise agreement provides franchisees with greater legal protection and recourse, aligning with a trend in franchise law towards protecting franchisee rights and ensuring fair dealing within the franchise relationship.