For Brueggers Bagels franchisees, can a statement signed in connection with the commencement of the franchise relationship waive claims under any applicable state franchise law, including fraud in the inducement?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
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- No statement, questionnaire or acknowledgement 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 behalf of the Franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — RECEIPTS (FDD pages 61–335)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, addenda for franchisees in Maryland, Minnesota, and Washington clarify that no statement, questionnaire, or acknowledgement signed in connection with the commencement of the franchise relationship can waive claims under any applicable state franchise law, including fraud in the inducement. This protection supersedes any other conflicting terms in any document executed in connection with the franchise.
This means that Brueggers Bagels franchisees in these states retain their rights under state franchise laws, even if they sign agreements that appear to waive those rights. This specifically includes the right to pursue claims of fraud in the inducement, which is when a franchisee is convinced to enter into the agreement based on false or misleading information.
For a prospective Brueggers Bagels franchisee, this is a significant protection. It ensures that the franchisee can't inadvertently give up their legal rights through standard paperwork. It also reinforces that the franchisee can rely on the franchisor's statements and representations without fear of later being told they waived their right to do so. This type of clause is not uncommon in franchise agreements, particularly in states with strong franchise protection laws, as it aims to balance the franchisor's need for standardized agreements with the franchisee's right to legal recourse.