Does the Bft franchise agreement allow a franchisee to disclaim reliance on statements made by the franchisor or its representatives?

According to Bft's 2025 Franchise Disclosure Document, the franchise agreement does not allow a franchisee to disclaim reliance on statements made by Bft or its representatives. 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 Bft, franchise sellers, or anyone acting on Bft's behalf. This provision takes precedence over any other term in any document related to the franchise. This protection applies to franchisees in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, and Wisconsin.

This "no disclaimer" clause is beneficial for prospective Bft franchisees as it ensures they can hold Bft accountable for any misrepresentations made during the franchise sales process. It prevents Bft from using standard contract language to shield itself from liability for misleading statements. This protection is particularly important given the significant investment required to start a franchise.

However, franchisees should be aware that this protection may not extend to all states, as the specific language applies to franchisees in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, and Wisconsin. Franchisees in other states may need to seek independent legal advice to understand their rights regarding reliance on franchisor statements. Additionally, while the clause protects against disclaiming reliance, it does not automatically guarantee a successful claim; franchisees would still need to prove that the statements were indeed made, were false or misleading, and caused them damages.