Does the Bft franchise agreement supersede any other term of any document executed in connection with the franchise regarding waivers or disclaimers?

According to Bft's 2025 Franchise Disclosure Document, certain provisions within the franchise agreement take precedence over any conflicting terms in other documents related to the franchise, specifically concerning waivers or disclaimers. For franchisees in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, or Wisconsin, no statement, questionnaire, or acknowledgment can waive claims under state franchise law or disclaim reliance on franchisor statements. This ensures that franchisees in these states retain their legal rights and protections, regardless of any conflicting language in other documents.

This protection is particularly important because it prevents Bft from using supplementary documents to circumvent franchise laws or disclaim responsibility for statements made during the franchise sales process. The clause ensures that franchisees' rights under applicable state franchise laws, including those related to fraud in the inducement, are upheld. This means that if a franchisee believes they were misled or defrauded, they can pursue legal action without being barred by waivers or disclaimers in other documents.

For prospective Bft franchisees, this provision offers a degree of security, especially in states with strong franchise laws. It clarifies that the franchise agreement and the protections it offers cannot be undermined by other documents. However, franchisees should still carefully review all documents and seek legal advice to fully understand their rights and obligations. It is also important to note that the Illinois Franchise Disclosure Act has specific provisions that void any attempt to waive compliance with the Act.

It is fairly common in franchising to see clauses that protect franchisees' rights, especially concerning state franchise laws. These clauses are designed to ensure a fair balance of power between the franchisor and franchisee and to prevent franchisors from using waivers or disclaimers to avoid legal responsibility. This provision in the Bft franchise agreement aligns with this industry trend, providing additional security for franchisees.