Does the Browns Chicken franchise agreement supersede other terms in documents related to the franchise regarding waivers of claims?
Browns_Chicken 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 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to the 2025 Browns Chicken Franchise Disclosure Document, no statement, questionnaire, or acknowledgment signed by a franchisee in connection with starting the franchise can waive claims under state franchise law, including fraud claims, or disclaim reliance on statements made by the franchisor or its representatives. This specific provision takes precedence over any conflicting terms in other documents related to the franchise agreement. This means that even if a franchisee signs something that seems to waive their rights, this particular clause protects their ability to pursue certain legal claims.
This protection is significant for prospective Browns Chicken franchisees because it ensures that they cannot inadvertently forfeit their rights through preliminary paperwork or agreements. Specifically, it maintains their ability to bring claims of fraud in the inducement, meaning claims that they were misled into entering the franchise agreement. It also prevents Browns Chicken from disclaiming responsibility for statements made during the franchise sales process.
This type of clause is not uncommon in franchise agreements, as many states have franchise laws designed to protect franchisees. The inclusion of this clause in the Browns Chicken franchise agreement reinforces the franchisee's rights under these laws and provides an added layer of security. Franchisees should still carefully review all documents and seek legal counsel to fully understand their rights and obligations, but this provision offers some assurance that their fundamental legal protections remain intact.