In connection with the commencement of the Brain Balance franchise relationship, can a franchisee disclaim reliance on any statement made by the franchisor in Minnesota?

According to the 2025 Brain Balance FDD, if you are a franchisee in Minnesota, you cannot disclaim reliance on any statement made by Brain Balance or anyone acting on their behalf in connection with starting the franchise relationship. This protection extends to claims under any applicable state franchise law, including fraud in the inducement. This means that any agreement stating you waive the right to hold Brain Balance accountable for their statements is superseded by this provision. This ensures that franchisees in Minnesota retain their legal rights and recourse against the franchisor, regardless of any conflicting terms in the franchise agreement.

This provision is particularly important for prospective Brain Balance franchisees in Minnesota as it safeguards them from potentially misleading information provided by the franchisor during the franchise sales process. It prevents Brain Balance from using disclaimers to avoid liability for misrepresentations or false promises made to induce franchisees to invest in the franchise. The Minnesota addendum ensures that franchisees can rely on the information provided by Brain Balance and hold them accountable for its accuracy.

This protection is outlined in the Minnesota Addendum to the Franchise Agreement, which specifically addresses franchisee rights within the state. The addendum reinforces that no statement, questionnaire, or acknowledgment signed by the franchisee can waive claims under state franchise law or disclaim reliance on statements made by the franchisor. This provision takes precedence over any other conflicting terms in any document executed with the franchise, providing a clear legal standard for the franchise relationship in Minnesota.