In which states does the "No Waiver or Disclaimer of Reliance" provision apply to Brightstar Care franchisees?
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 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 81–92)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, the "No Waiver or Disclaimer of Reliance" provision applies to franchisees and franchises subject to state franchise registration/disclosure laws in specific states. This provision ensures that franchisees in these states cannot waive certain rights or disclaim reliance on statements made by Brightstar Care during the franchise commencement.
Specifically, the provision applies in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. This means that any statement, questionnaire, or acknowledgment signed by the franchisee cannot waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Brightstar Care or its representatives.
This provision is significant for prospective Brightstar Care franchisees in these states as it protects their rights under state franchise laws and ensures they can hold Brightstar Care accountable for any misrepresentations made during the franchise sales process. It supersedes any other conflicting terms in any document executed in connection with the franchise, providing an additional layer of protection for franchisees in these specific states.