What effect does a franchisee's signed statement, questionnaire, or acknowledgment NOT have in connection with the commencement of the Buona franchise relationship?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
No statement, questionnaire, or acknowledgment 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 any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, any statement, questionnaire, or acknowledgment signed by a franchisee related to starting the franchise does not waive claims under state franchise law. This includes claims of fraud. It also does not disclaim reliance on statements made by Buona, franchise sellers, or anyone acting for Buona. This rule overrides any conflicting terms in any document related to the franchise agreement. This protection ensures that franchisees retain their legal rights and recourse, regardless of any agreements they may sign during the initial phase of the franchise relationship.
This provision is designed to protect franchisees from inadvertently giving up their rights through standard paperwork. Many franchise agreements include various acknowledgments and statements. This clause clarifies that these documents cannot be used to prevent a franchisee from pursuing legal claims related to franchise law or misrepresentations made during the sales process. This is particularly important in states with strong franchise laws that aim to protect franchisees.
For a prospective Buona franchisee, this means that signing a questionnaire or acknowledgment during the franchise commencement process does not prevent them from later claiming fraud or misrepresentation if they believe they were misled. This protection offers a degree of security, knowing that their legal rights are preserved even after signing initial documents. It also encourages transparency and honesty from the franchisor during the franchise sales process, as they cannot rely on signed documents to shield them from potential legal claims.