Does the provision regarding statements, questionnaires, or acknowledgments signed by a Budget franchisee supersede other terms in documents executed in connection with the franchise in Washington?
Budget 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 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, a specific provision addresses the enforceability of statements, questionnaires, or acknowledgments signed by franchisees in connection with their franchise. For Budget franchisees in Washington, any such document cannot waive claims under Washington's franchise law, including claims of fraud, nor can they disclaim reliance on statements made by Budget or its representatives.
Specifically, the FDD states that this provision supersedes any other term in any document executed in connection with the franchise. This means that if there is a conflict between this clause and any other part of the franchise agreement or related documents, this clause will take precedence in Washington.
This protection is significant for prospective Budget franchisees in Washington because it ensures that they cannot inadvertently waive their legal rights or be bound by disclaimers that would prevent them from pursuing legitimate claims against the franchisor. This clause aims to protect franchisees from overreaching by the franchisor and provides a legal safeguard for their investment and business operations.