Regarding the commencement of a Brueggers Bagels franchise relationship, what effect does a statement, questionnaire, or acknowledgment signed by a franchisee NOT have?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 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 23 — RECEIPTS (FDD pages 61–335)
What This Means (2025 FDD)
According to the 2025 FDD, a statement, questionnaire, or acknowledgment signed by a Brueggers Bagels franchisee at the start of their franchise relationship cannot waive claims under state franchise law, including claims related to fraud in the inducement. It also cannot disclaim reliance on statements made by Brueggers Bagels, its franchise sellers, or anyone acting on the company's behalf. This protection is highlighted in addenda for franchisees in Maryland, Washington and Minnesota.
This means that even if a franchisee signs a document that appears to waive certain rights or acknowledges reliance on the franchisor's statements, those waivers or acknowledgments will not be legally effective regarding state franchise law or reliance on the franchisor's representations. This is particularly important because franchise agreements often contain clauses that attempt to limit the franchisor's liability or restrict the franchisee's ability to sue.
For a prospective Brueggers Bagels franchisee, this provision offers a degree of protection against potentially misleading statements or unfair contract terms. It ensures that franchisees retain their rights under state franchise laws, regardless of what they may have signed at the beginning of the franchise relationship. This can be especially relevant if a franchisee later discovers that they were induced into the agreement based on false or misleading information provided by the franchisor.
However, it's important to note that this protection may be limited to specific state laws and may not cover all types of claims or disputes. Franchisees should always consult with an attorney to fully understand their rights and obligations under the franchise agreement and applicable state laws. The FDD also notes the importance of addenda to the franchise agreement, which may modify certain terms to comply with specific state regulations, such as those in Washington, Minnesota, and Maryland.