Does the Bumper Man franchise agreement allow a franchisee to disclaim reliance on statements made by the franchisor or its representatives through signed questionnaires or acknowledgements?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
The following provision applies only to franchisees and franchises that are subject to the state franchise registration/disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin:
No statement, questionnaire, or acknowledgement signed or agreed to by you 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 any statement made by us, any franchise seller, or any other person acting on our behalf. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, the franchise agreement's stance on disclaiming reliance on franchisor statements via signed documents depends on the franchisee's location. For franchisees subject to franchise registration/disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin, any signed statement, questionnaire, or acknowledgment cannot waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Bumper Man or its representatives. This provision overrides any conflicting terms in franchise documents.
This means that Bumper Man franchisees in those specified states retain their legal rights and protections, regardless of any disclaimers they may have signed. They can still pursue claims of fraud or misrepresentation based on statements made by the franchisor. This offers a significant layer of protection to franchisees in these states, ensuring they are not bound by potentially misleading information provided during the franchise sales process.
However, it's important to note that this protection does not extend to franchisees outside of those listed states. In those locations, it appears Bumper Man may attempt to enforce waivers or disclaimers of reliance. Prospective franchisees should carefully review the franchise agreement and related documents with legal counsel to understand their rights and obligations in their specific state. They should also seek clarification from Bumper Man regarding the enforceability of such waivers in their jurisdiction.