Does the Franchisee Disclosure Acknowledgment Statement for Buns On Fire franchises constitute a disclaimer of reliance on statements made by the Franchisor in states with franchise disclosure laws?

According to the 2025 Buns On Fire Franchise Disclosure Document, the Franchisee Disclosure Acknowledgment Statement does not constitute a disclaimer of reliance on statements made by the franchisor in states with franchise disclosure laws. For franchisees and franchises subject to state franchise disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin, the questionnaire associated with the Franchisee Disclosure Acknowledgment Statement is not intended to, and does not, waive any claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on any statement made by any person acting on behalf of Buns On Fire. This protection ensures that franchisees in these states retain their legal rights and recourse against Buns On Fire, even after signing the acknowledgment statement.

Furthermore, the FDD includes addenda for specific states like California, Hawaii, and Rhode Island, which reinforce this protection. For example, the California addendum states that no disclaimer, questionnaire, clause, or statement signed by a franchisee can be interpreted as waiving any claim of fraud in the inducement or disclaiming reliance on statements made by Buns On Fire. Similarly, the Hawaii addendum supplements the franchise agreement to ensure that no statement, questionnaire, or acknowledgment can waive claims under state franchise law or disclaim reliance on statements made by the franchisor. These state-specific addenda provide additional layers of protection for franchisees in these jurisdictions.

Buns On Fire also includes general provisions applicable across all franchise agreements to prevent franchisees from waiving their rights. The FDD states that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made on behalf of Buns On Fire. This provision supersedes any other term in any document executed in connection with the franchise, ensuring that franchisees are protected regardless of other clauses in the agreement. This comprehensive approach underscores Buns On Fire's commitment to complying with franchise laws and protecting the rights of its franchisees.