Can a Buff City Soap franchisee disclaim reliance on behalf of the Franchisor?
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, an addendum to the franchise agreement specifies that no statement, questionnaire, or acknowledgment signed by a franchisee can disclaim reliance on behalf of the franchisor. This protection extends to claims under applicable state franchise laws, including fraud in the inducement. This clause is designed to protect franchisees from inadvertently waiving their rights based on statements made by Buff City Soap or its representatives during the franchise sales process.
This provision is included in addenda for specific states such as South Dakota, Virginia, Illinois, Maryland, Minnesota, Wisconsin, Hawaii and North Dakota, suggesting that Buff City Soap is proactively addressing potential legal concerns in these jurisdictions. The inclusion of this clause in an addendum indicates that it supersedes any conflicting terms in the standard franchise agreement, reinforcing its importance.
For a prospective Buff City Soap franchisee, this means that any document they sign during the initial phase of the franchise relationship cannot be used to argue that they waived their right to rely on statements made by Buff City Soap. This offers a degree of security, ensuring that franchisees can pursue legal remedies if they believe they were misled during the franchise sales process. This protection is particularly relevant in states with strong franchise laws, as it prevents franchisees from unintentionally relinquishing their rights.