Under what circumstances does a statement signed by a Budget franchisee NOT waive claims under state franchise law?

According to Budget's 2025 Franchise Disclosure Document, a statement, questionnaire, or acknowledgment signed by a franchisee in connection with the commencement of the franchise relationship will not waive claims under any applicable state franchise law. This protection specifically includes claims related to fraud in the inducement or disclaiming reliance on statements made by Budget, its franchise sellers, or other representatives. This provision overrides any conflicting terms in any document executed in connection with the franchise agreement. This condition applies across multiple states, including California, Illinois, Maryland, Minnesota, North Dakota, Virginia, and Washington.

This means that even if a Budget franchisee signs a document that appears to waive their rights under state franchise law, that waiver may not be enforceable. This is particularly important in cases where the franchisee believes they were misled during the franchise sales process or if they relied on statements made by Budget that turned out to be false. The FDD emphasizes that this protection supersedes any other term of any document executed with the franchise, providing a safeguard for franchisees.

For prospective Budget franchisees, this provision offers a degree of security. It ensures that they cannot inadvertently waive their rights through standard paperwork at the beginning of the franchise relationship. Franchisees should still carefully review all documents and seek legal advice, but this clause provides an additional layer of protection against unknowingly relinquishing their legal rights under state franchise laws. This is a beneficial provision for franchisees as it protects them from potentially overreaching franchisor actions.