Does the Boulder Designs franchise agreement allow a franchisee to disclaim reliance on statements made by the franchisor or its representatives through questionnaires or acknowledgements signed at the commencement of the franchise relationship?

According to the 2025 Boulder Designs Franchise Disclosure Document, the franchise agreement does not allow a franchisee to disclaim reliance on statements made by the franchisor, franchise seller, or anyone acting on their behalf. This protection extends to statements made in questionnaires or acknowledgments signed at the start of the franchise relationship. This provision is designed to prevent Boulder Designs from using these documents to shield themselves from liability for misrepresentations made during the franchise sales process. The FDD explicitly states that this protection supersedes any other conflicting terms in any document related to the franchise agreement.

This safeguard is particularly relevant in states with franchise laws, as it reinforces the franchisee's right to pursue claims of fraud in the inducement, meaning claims that the franchisee was misled into signing the agreement. For example, in California, Section 31512.1 of the Corporations Code explicitly voids any provision in franchise documents that disclaims reliance on representations made by Boulder Designs or its agents, reliance on the FDD itself, or violations of franchise law.

For prospective Boulder Designs franchisees, this means that any assurances or promises made by the franchisor during the sales process, even if not explicitly written into the franchise agreement, can be relied upon. Questionnaires or acknowledgments signed at the beginning of the relationship cannot be used by Boulder Designs to later deny those representations. However, it is important for franchisees to document all such representations and to consult with an attorney to fully understand their rights under applicable state laws.