What claims cannot be waived by a Brain Balance franchisee in connection with the commencement of the franchise relationship?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
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 with the franchise.
Source: Item 23 — RECEIPTS (FDD pages 72–292)
What This Means (2025 FDD)
According to the 2025 Brain Balance Franchise Disclosure Document, a franchisee cannot waive certain claims related to the commencement of the franchise relationship. Specifically, no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under any applicable state franchise law. This includes claims related to fraud in the inducement.
Additionally, a franchisee cannot disclaim reliance on any statement made by Brain Balance, its franchise seller, or anyone acting on their behalf. This protection ensures that franchisees are not bound by agreements that force them to relinquish their rights to pursue legal remedies for misrepresentation or fraud. This provision is designed to protect franchisees from unknowingly giving up their legal rights when starting the franchise.
This clause supersedes any other conflicting terms in any document executed with the franchise, reinforcing the protection afforded to the franchisee under applicable state franchise laws and preventing Brain Balance from circumventing these protections through other contractual clauses. This ensures that franchisees retain their rights to legal recourse, promoting a fairer relationship between Brain Balance and its franchisees.