Does the Body20 franchise agreement in Virginia allow a franchisee to disclaim reliance on statements made by the franchisor or their representatives?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
No statement, questionnaire, or acknowledgement signed or agreed to by you 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 us, any franchise seller, or any other person acting on behalf of us. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, franchisees in Virginia are protected from waiving claims or disclaiming reliance on franchisor statements. Specifically, any statement, questionnaire, or acknowledgment signed by a Body20 franchisee in Virginia cannot waive rights under state franchise law, including claims of fraud. This also means a franchisee cannot disclaim reliance on statements made by Body20, its franchise sellers, or anyone acting on their behalf. This protection is explicitly stated to override any other conflicting terms in the franchise agreement. This ensures that Body20 franchisees in Virginia retain their legal rights and recourse, regardless of any agreements they may sign during the franchise commencement. This protection is also afforded to franchisees in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Washington, and Wisconsin.
This provision is particularly important for prospective Body20 franchisees in Virginia because it prevents the franchisor from using contractual language to shield itself from liability for misrepresentations or omissions made during the franchise sales process. It ensures that franchisees can rely on the information provided by the franchisor when making their investment decision and can seek legal remedies if that information proves to be false or misleading. This protection aligns with the Virginia Retail Franchising Act, which aims to prevent franchisors from using undue influence to induce franchisees to surrender their rights.
In essence, this clause strengthens the franchisee's position by ensuring they can hold Body20 accountable for the accuracy and truthfulness of the information provided. It mitigates the risk of franchisees being bound by agreements that inadvertently waive their legal rights or prevent them from seeking redress for damages caused by the franchisor's actions. This is a significant benefit for franchisees, as it provides a legal safety net and promotes a more equitable balance of power between the franchisor and franchisee.