In Washington, what effect do statements, questionnaires, or acknowledgments signed by a Brueggers Bagels franchisee have on waiving claims?
Brueggers_Bagels 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 23 — RECEIPTS (FDD pages 61–335)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, a Washington addendum is included that addresses the effect of certain documents on waiving claims. Specifically, no statement, questionnaire, or acknowledgment signed by a Brueggers Bagels franchisee at the start of the franchise relationship can waive claims under Washington's franchise law. This includes claims related to fraud in the inducement or disclaiming reliance on statements made by Brueggers Bagels or its representatives. This provision overrides any conflicting terms in other franchise documents.
This protection for Brueggers Bagels franchisees in Washington is reinforced by the stipulation that the Washington Franchise Investment Protection Act prevails in case of conflicting laws. Furthermore, the addendum states that Exhibit G, the Disclosure Acknowledgement Statement, should not be signed and does not apply in Washington.
In practical terms, this means that a Brueggers Bagels franchisee in Washington cannot unintentionally forfeit their rights under state franchise law by signing a standard form or questionnaire during the initial phase of the franchise relationship. This provides an added layer of security, ensuring that franchisees retain their legal recourse and protections afforded by Washington law.
However, it's important to note that this amendment applies only if the Washington Franchise Investment Protection Act would apply independently, without reference to the amendment itself. Additionally, a franchisee can execute a release or waiver of rights under the Washington Franchise Investment Protection Act if it is part of a negotiated settlement after the franchise agreement is in effect and both parties are represented by independent counsel.