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What effect do statements, questionnaires, or acknowledgements signed by a Buff City Soap franchisee have on waiving claims under state franchise law?

Buff_City_Soap Franchise · 2025 FDD

Answer from 2025 FDD Document

No statement, questionnaire or acknowledgement 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 behalf of the Franchisor. This provision supersedes any other term of any document executed in connection with the franchise.

Source: Item 6 — , Securities Offering Fee, in the amount column is revised to state the following: (FDD pages 216–303)

What This Means (2025 FDD)

According to the 2025 FDD, addenda to the Buff City Soap franchise agreement for use in several states (South Dakota, Maryland, Minnesota, Hawaii, Illinois, North Dakota and Washington) clarify the effect of statements, questionnaires, or acknowledgements signed by a franchisee. Specifically, these documents confirm that no such document signed in connection with starting the franchise can waive claims under applicable state franchise law. This includes claims of fraud in the inducement.

This provision also ensures that franchisees cannot disclaim reliance on statements made by Buff City Soap, its sellers, or anyone acting on the company's behalf. This protection is significant because it prevents Buff City Soap from using these documents to shield itself from liability related to misrepresentations or omissions made during the franchise sales process. The FDD states that this provision supersedes any other conflicting terms in any document executed in connection with the franchise agreement.

For a prospective Buff City Soap franchisee, this means that signing a statement, questionnaire, or acknowledgement will not prevent them from pursuing legal claims related to state franchise law or reliance on the franchisor's statements. This offers a degree of protection against potentially overreaching clauses that might otherwise limit their legal recourse. Franchisees should still carefully review all documents and seek legal counsel to fully understand their rights and obligations, but this provision provides an additional layer of security.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.