In Virginia, can a Boulder Designs franchisee disclaim reliance on behalf of the franchisor?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
- No statement, questionnaire or acknowledgement 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 behalf of the Franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
FOR THE STATE OF WASHINGTON
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 38–44)
What This Means (2025 FDD)
According to Boulder Designs's 2025 Franchise Disclosure Document, the state-specific addendum for Washington addresses the disclaimer of reliance. Specifically, no statement, questionnaire, or acknowledgement signed by a franchisee regarding the commencement of the franchise relationship can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on behalf of Boulder Designs. This provision overrides any conflicting terms in other documents related to the franchise agreement.
This means that in Washington, a Boulder Designs franchisee cannot sign away their right to claim they relied on statements made by the franchisor, especially if those statements turn out to be fraudulent. This protection is designed to prevent franchisors from using fine print to shield themselves from liability for misrepresentations made during the franchise sales process.
While the FDD excerpt explicitly addresses this issue for franchisees in Washington, it does not provide specific information regarding Virginia. Therefore, prospective franchisees in Virginia should seek clarification from Boulder Designs regarding the enforceability of disclaimers of reliance in their state. It would be prudent to consult with a legal professional in Virginia to understand the specific protections afforded to franchisees under Virginia law.