Does the Buona franchise agreement allow a franchisee to disclaim reliance on statements made by the franchisor or their representatives?
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, the franchise agreement does not allow a franchisee to disclaim reliance on statements made by Buona or its representatives. Specifically, the FDD states that no statement, questionnaire, or acknowledgment signed by a franchisee in connection with starting the franchise can waive claims under state franchise law, including fraud, or disclaim reliance on statements made by Buona or anyone acting on its behalf. This rule overrides any other conflicting terms in any document related to the franchise agreement.
This provision protects franchisees by ensuring they can hold Buona accountable for representations made during the franchise sales process. It prevents Buona from using contractual language to shield itself from liability for misleading or false statements that may have induced a franchisee to invest in the franchise.
This type of clause is common in franchise agreements to protect franchisees. The inclusion of this clause in the Buona franchise agreement provides some assurance to potential franchisees that they are not giving up their right to pursue legal action based on misrepresentations made to them.