Can a franchisee disclaim reliance on behalf of Buff City Soap in connection with the commencement of the franchise relationship?
Buff_City_Soap Franchise · 2025 FDDAnswer 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 Buff City Soap FDD, a franchisee cannot disclaim reliance on statements made by Buff City Soap or its representatives in connection with the commencement of the franchise relationship. This protection is included in addenda to the franchise agreement for use in several states, including Maryland, South Dakota, Virginia, Minnesota, Illinois, North Dakota, Hawaii and Washington.
This means that any statement, questionnaire, or acknowledgment signed by the franchisee cannot waive claims under state franchise law, including claims related to fraud in the inducement. This specifically prevents franchisees from disclaiming reliance on statements made by Buff City Soap, franchise sellers, or anyone acting on the franchisor's behalf. This provision is designed to override any other conflicting terms in any document related to the franchise agreement.
For a prospective Buff City Soap franchisee, this is a beneficial provision. It ensures that franchisees retain their legal rights to pursue claims against the franchisor if they believe they were misled or provided with fraudulent information during the franchise sales process. This protection is particularly important because the franchise agreement typically contains various clauses and acknowledgments that could potentially limit a franchisee's ability to bring claims against the franchisor. By explicitly stating that franchisees cannot disclaim reliance, the addendum strengthens the franchisee's position and provides an additional layer of security.