Does the Bhc franchise agreement disclaim the representations made in the Franchise Disclosure Document (FDD)?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) In accordance with the foregoing section 16.14(a), the parties to this Agreement agree that this Agreement, and the Operations Manual, constitutes the entire agreement between the parties and contain all of the terms, conditions, rights and obligations of the parties with respect to the Franchised Business contemplated by this Agreement and any other aspect of the relationship between the parties; provided however, that nothing in this Agreement or in any related agreement or writing is intended to disclaim the representations made in the FDD that was provided to Franchisee.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the franchise agreement does not disclaim the representations made in the FDD. The agreement states that it, along with the Operations Manual, constitutes the entire agreement between the parties. However, it explicitly clarifies that nothing within the agreement is intended to disclaim the representations made in the Franchise Disclosure Document that was provided to the franchisee. This ensures that the franchisee can rely on the information presented in the FDD.
This provision is favorable for prospective Bhc franchisees as it protects them from potential discrepancies between what is presented in the FDD and what is stipulated in the franchise agreement. It confirms that the representations made by Bhc in the FDD are considered valid and binding, offering a level of security and transparency in the franchise relationship. Franchisees can hold Bhc accountable for the statements and information provided in the FDD.
This type of clause is fairly standard in franchise agreements to comply with franchise laws and regulations, which aim to protect franchisees by ensuring they have access to accurate and reliable information before investing in a franchise. By explicitly stating that the FDD's representations are not disclaimed, Bhc reinforces its commitment to transparency and fair dealing with its franchisees.