Under what circumstances does the provision regarding waiver of claims and disclaimer of reliance apply to a Bft franchise?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
FOR THE FOLLOWING STATES: CALIFORNIA, HAWAII, ILLINOIS, INDIANA, MARYLAND, MICHIGAN, MINNESOTA, NEW YORK, NORTH DAKOTA, RHODE ISLAND, SOUTH DAKOTA, VIRGINIA , 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 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 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)
What This Means (2025 FDD)
According to the 2025 Bft Franchise Disclosure Document, a provision regarding the waiver of claims and disclaimer of reliance applies to franchisees in specific states. 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 signed in connection with starting the franchise can waive claims under state franchise law, including claims of fraud.
This means that Bft franchisees in those states retain their legal rights and protections under state franchise laws, even if they sign agreements that seem to waive those rights. This protection extends to claims of fraud in the inducement, meaning a franchisee can still claim they were misled into signing the agreement. This provision overrides any other conflicting terms in the franchise agreement.
For prospective Bft franchisees, this is a crucial safeguard. It ensures that they cannot inadvertently lose their legal rights through standard paperwork at the beginning of the franchise relationship. Franchisees should still consult with legal counsel to fully understand their rights and obligations, but this provision offers a baseline level of protection against unknowingly waiving important legal claims.