What does the provision regarding waivers and disclaimers in the Brain Balance franchise agreement supersede?
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 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 addresses waivers and disclaimers signed by franchisees. This provision ensures that no statement, questionnaire, or acknowledgment signed by a franchisee at the start of their franchise relationship can waive claims under state franchise law, including claims of fraud. It also prevents franchisees from disclaiming reliance on statements made by Brain Balance, its sellers, or representatives.
This clause is designed to protect franchisees from inadvertently giving up their legal rights or claims due to signing documents at the beginning of the franchise relationship. It specifically covers situations where a franchisee might claim they were induced into the agreement through fraudulent statements or that they relied on information provided by Brain Balance.
In practical terms, this means that even if a franchisee signs a document that appears to waive certain rights or disclaim reliance on certain statements, this particular provision in the franchise agreement takes precedence. It ensures that franchisees retain their rights under applicable state franchise laws and can still pursue claims against Brain Balance if necessary. This protection applies regardless of any other conflicting terms in any document executed in connection with the franchise agreement.