For Bumper Man, what is the significance of the Receipt containing the names of franchise sellers or brokers?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
No statement, questionnaire, or acknowledgement signed or agreed to by 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 any statement made by Franchisor, any franchise seller, or any other person acting on Franchisor's behalf. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, any statement, questionnaire, or acknowledgement signed by the franchisee cannot waive claims under state franchise law, including fraud in the inducement. This also means a franchisee cannot disclaim reliance on statements made by Bumper Man, franchise sellers, or anyone acting on Bumper Man's behalf. This protection supersedes any other conflicting terms in documents related to the franchise agreement.
This clause is significant for a prospective Bumper Man franchisee because it protects their rights regarding claims of fraud or misrepresentation. It ensures that franchisees are not bound by waivers or disclaimers that could prevent them from pursuing legal action if they believe they were misled during the franchise sales process. This protection extends to statements made not only by Bumper Man itself but also by franchise sellers or brokers acting on their behalf.
In essence, this provision aims to provide franchisees with legal recourse if they believe they were induced into the franchise agreement based on false or misleading information. It reinforces the importance of transparency and accurate representation during the franchise sales process, ensuring that franchisees are not unfairly disadvantaged by waivers or disclaimers.