Regarding the Best Western franchise, what claims cannot be waived by a franchisee in connection with the commencement of the franchise relationship?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
No Waiver of Disclaimer of Reliance in Certain States. The following provision applies only to franchisees and franchises that are subject to the state franchise disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington or Wisconsin:
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 any 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 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, franchisees in certain states cannot waive specific claims related to their franchise relationship. Specifically, in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin, franchisees cannot waive claims under applicable state franchise laws, including claims of fraud in the inducement.
This means that any statement, questionnaire, or acknowledgment signed by a Best Western franchisee at the start of their franchise agreement cannot be used to waive their right to pursue legal claims against Best Western if they believe they were misled or defrauded into entering the agreement. Furthermore, franchisees in these states cannot disclaim reliance on statements made by Best Western or its representatives. This protection is designed to ensure that franchisees are not bound by clauses that prevent them from seeking legal recourse if they were given false or misleading information.
This provision supersedes any other conflicting terms in any document executed in connection with the Best Western franchise agreement. This ensures that the franchisee's rights under state franchise laws are protected, regardless of any other agreements or waivers they may have signed. This "no waiver of disclaimer of reliance" clause is a significant protection for franchisees, ensuring they retain their legal rights even after signing the franchise agreement.