factual

Does the provision regarding waivers in connection with the commencement of the franchise relationship for Brueggers Bagels supersede other terms in documents executed with the franchise?

Brueggers_Bagels Franchise · 2025 FDD

Answer from 2025 FDD Document

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 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 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, certain state addenda address the issue of waivers and their potential to supersede other terms in documents related to the franchise agreement. Specifically, the addenda for Maryland, Minnesota, and Washington state address this issue. These addenda state that no statement, questionnaire, or acknowledgment signed by a franchisee at the start of the franchise relationship can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on franchisor statements.

For prospective Brueggers Bagels franchisees, this means that the standard franchise agreement is modified by these state-specific provisions. In Maryland, Minnesota, and Washington, franchisees retain their rights under state franchise laws, regardless of any waivers they might have signed. This protection extends to claims of fraud and reliance on statements made by the franchisor.

This ensures that franchisees in these states are not inadvertently giving up their legal rights through standard documents executed when starting the franchise. The provision is designed to protect franchisees from overreaching by the franchisor and ensures that state franchise laws take precedence over conflicting terms in the franchise agreement.

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.