In California, does any statement signed by a Budget franchisee at the start of the franchise relationship waive claims under state franchise law, including fraud?

According to Budget's 2025 Franchise Disclosure Document, any statement, questionnaire, or acknowledgment signed by a franchisee in California at the start of the franchise relationship cannot waive claims under California franchise law. This includes claims related to fraud in the inducement. This protection is specifically highlighted in the "RIDER TO BUDGET RENT A CAR SYSTEM LICENSE AGREEMENT REQUIRED BY THE STATE OF CALIFORNIA".

This provision ensures that franchisees in California retain their legal rights and protections under state franchise law, even if they sign documents that might suggest otherwise. It prevents Budget from using contractual language to circumvent California's franchise regulations and safeguards franchisees from unknowingly relinquishing their right to pursue legal claims, especially those pertaining to fraudulent misrepresentation.

This type of clause is common in franchise agreements to comply with state franchise laws, which often aim to protect franchisees from overreaching by franchisors. Prospective Budget franchisees in California should be aware of this protection, as it reinforces their ability to seek legal recourse if they believe they have been defrauded or otherwise harmed by Budget's actions. This provision supersedes any other conflicting terms in any document executed in connection with the franchise, further solidifying its importance.