Can a Brain Balance franchisee disclaim reliance on statements made by the franchisor or its representatives?

According to the 2025 Brain Balance Franchise Disclosure Document, in certain states, a franchisee cannot disclaim reliance on statements made by Brain Balance or its representatives. Specifically, addenda for California, Hawaii, Illinois, and Maryland state that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Brain Balance or its representatives. These provisions override any conflicting terms in other franchise documents. This protection ensures that franchisees in these states can pursue legal remedies if they believe they were misled during the franchise sales process.

This protection is particularly important because the franchise sales process often involves numerous communications and representations from the franchisor. Without such a clause, a franchisee might inadvertently waive their right to sue if they relied on false or misleading information. The inclusion of these addenda reflects a commitment to protecting franchisees' rights and ensuring transparency in the franchise relationship, at least within those specific states.

For prospective Brain Balance franchisees, this means that if you are franchising in California, Hawaii, Illinois, or Maryland, you have some protection against unknowingly waiving your rights to make claims based on misrepresentations. However, it is crucial to understand the specific laws in your state and to seek legal advice to fully understand your rights and obligations. Franchisees in other states may not have the same protections, so it's essential to carefully review all documents and seek legal counsel before signing any agreements.