factual

In the Browns Chicken franchise agreement, what is the effect of a franchisee signing a questionnaire regarding waiving claims under franchise law?

Browns_Chicken Franchise · 2025 FDD

Answer 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 22 — Contracts (FDD page 43)

What This Means (2025 FDD)

According to Browns Chicken's 2025 Franchise Disclosure Document, any statement, questionnaire, or acknowledgment signed by a franchisee related to the franchise commencement will not waive claims under state franchise law, including fraud in the inducement. It also will not disclaim reliance on statements made by Browns Chicken, franchise sellers, or individuals acting on behalf of Browns Chicken. This provision overrides any conflicting terms in any document executed in connection with the franchise agreement.

This means that even if a prospective Browns Chicken franchisee signs a document that appears to waive their rights or acknowledge they are not relying on statements made by the franchisor, those waivers or disclaimers will not be legally effective regarding state franchise law or reliance on franchisor statements. This protects the franchisee from inadvertently giving up legal rights during the initial stages of the franchise relationship.

This type of clause is included to protect franchisees, ensuring they retain their rights under franchise laws and can pursue claims like fraud if they believe they were misled. Prospective Browns Chicken franchisees should still carefully review all documents before signing, but this provision offers some assurance that they are not unknowingly forfeiting important legal protections.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.