In the Bft franchise agreement, can a franchisee disclaim reliance on statements made by the franchisor in states with franchise registration or disclosure laws?

According to Bft's 2025 Franchise Disclosure Document, if a franchisee is subject to franchise registration or disclosure laws in specific states, they cannot disclaim reliance on statements made by Bft or its representatives. This protection applies in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin. This means that any statement, questionnaire, or acknowledgement signed by the franchisee cannot waive claims under state franchise law, including claims of fraud in the inducement, or disclaim reliance on statements made by Bft.

This provision is significant for prospective Bft franchisees in those states because it ensures that they retain their legal rights and remedies under state franchise laws. It prevents Bft from using contractual language to shield itself from liability for misrepresentations or fraudulent statements made during the franchise sales process. This protection is particularly important because the franchise relationship relies heavily on the information provided by the franchisor to the franchisee.

This clause supersedes any other conflicting terms in any document executed in connection with the franchise agreement. This means that even if other parts of the agreement seem to suggest that a franchisee is waiving their rights or disclaiming reliance, this specific provision will take precedence in the listed states. This offers an additional layer of security for franchisees, ensuring that their rights under state franchise laws are preserved despite any potentially conflicting language elsewhere in the franchise agreement.