Does the Brightstar Care franchise agreement require franchisees to waive reliance on any representations made in the franchise disclosure document?
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 the 2025 Brightstar Care Franchise Disclosure Document, the franchise agreement does not allow franchisees in certain states to waive reliance on statements made by Brightstar Care. Specifically, for franchisees subject to 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 signed statement can waive claims under state franchise law, including fraud, or disclaim reliance on statements made by Brightstar Care or its representatives. This provision overrides any conflicting terms in other documents related to the franchise agreement.
This means that Brightstar Care franchisees in the specified states retain their legal rights to pursue claims based on misrepresentations or fraud, and any attempt to waive these rights is unenforceable. This protection is particularly important for prospective franchisees as it ensures they can hold Brightstar Care accountable for the accuracy and truthfulness of the information provided during the franchise sales process.
For prospective franchisees outside of these listed states, it is important to note that the FDD does not explicitly state whether a waiver of reliance is permitted or not. Therefore, it is crucial for potential franchisees in other states to seek legal counsel to understand their rights and obligations regarding reliance on representations made by Brightstar Care during the franchise sales process. They should also carefully review all documents and agreements before signing to ensure they are fully aware of any potential waivers or limitations on their legal rights.