What effect do statements, questionnaires, or acknowledgements signed by a Brightstar Care franchisee have on waiving claims under state franchise law in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
The following provision applies only to franchisees and franchises that are subject to the state franchise registration/disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin:
No statement, questionnaire, or acknowledgement signed or agreed to by you 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 us, any franchise seller, or any other person acting on our behalf. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 22 — CONTRACTS (FDD pages 117–118)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, a specific provision addresses the enforceability of statements signed by franchisees in certain states. For franchisees operating in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin, any statement, questionnaire, or acknowledgment they sign in connection with starting their franchise will not waive claims under applicable state franchise law. This includes claims related to fraud in the inducement.
This provision also ensures that franchisees in those states cannot disclaim reliance on statements made by Brightstar Care, its franchise sellers, or anyone acting on their behalf. This means that even if a franchisee signs a document suggesting they did not rely on certain representations, they are still able to bring a claim based on those representations. This protection is significant because it prevents Brightstar Care from using standardized acknowledgments to shield itself from liability for misrepresentations or omissions made during the franchise sales process.
This clause supersedes any other conflicting terms in any document executed in connection with the franchise agreement. Therefore, franchisees in the specified states receive additional protection under state franchise laws, ensuring they retain their rights to pursue claims, even if other documents suggest otherwise. This is a beneficial provision for franchisees in those states, as it strengthens their legal standing in potential disputes with Brightstar Care.