For a Brain Balance franchise, does the FDD supersede any other term of any document executed in connection with the franchise?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 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 in connection 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 specific provision exists that supersedes other terms in documents related to the franchise agreement. This provision ensures that no statement, questionnaire, or acknowledgment signed by a franchisee at the start of the franchise relationship can waive claims under state franchise law, including those related to fraud, or disclaim reliance on statements made by Brain Balance or its representatives.
This means that any prior agreements or documents that might conflict with a franchisee's rights under applicable state franchise laws are overridden by this specific clause. This protection extends to claims of fraud during the initial inducement to join the franchise, ensuring franchisees cannot inadvertently waive their right to pursue such claims. Additionally, franchisees cannot disclaim reliance on statements made by Brain Balance, its sellers, or representatives, which prevents Brain Balance from avoiding responsibility for representations made to potential franchisees.
For a prospective Brain Balance franchisee, this is a significant safeguard. It ensures that their rights under state franchise laws are protected and cannot be unintentionally waived through standard paperwork or agreements signed at the beginning of the franchise relationship. This clause provides a level of assurance that franchisees can rely on the information provided by Brain Balance during the decision-making process and that they retain the ability to pursue legal remedies if they believe they were misled or defrauded. This type of protection is not universally included in all franchise agreements, so it represents a notable benefit for Brain Balance franchisees.
However, it is important to note that this superseding clause may not cover all aspects of the franchise agreement or all potential disputes. Franchisees should still carefully review all documents and seek legal counsel to fully understand their rights and obligations. The FDD also includes addenda for specific states like Washington and Maryland, which contain additional provisions that may supersede the standard franchise agreement in those jurisdictions.