For Buff City Soap franchisees in South Dakota, what effect do statements, questionnaires, or acknowledgements signed in connection with the franchise relationship have regarding waiving claims under state franchise law or disclaiming 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 17 — (r) is amended subject to Indiana Code 23-2-2.7-1(9) to provide that the post-term noncompetition covenant shall have a geographical limitation of the territory granted to Franchisee. (FDD pages 210–216)
What This Means (2025 FDD)
According to Buff City Soap's 2025 Franchise Disclosure Document, certain protections are in place for franchisees in South Dakota. Specifically, any statement, questionnaire, or acknowledgment signed by a Buff City Soap franchisee at the start of their franchise relationship cannot waive claims they may have under South Dakota franchise law. This includes claims related to fraud in the inducement.
Additionally, these documents cannot disclaim reliance on statements made by Buff City Soap. This means that a franchisee cannot be held to have agreed that they did not rely on information provided by the franchisor when deciding to invest in the franchise.
This provision is designed to protect Buff City Soap franchisees in South Dakota by ensuring they retain their legal rights and recourse, regardless of any standard documents they may sign during the franchise commencement process. This protection supersedes any conflicting terms in any document executed in connection with the franchise agreement.