Under the Buona Franchise Agreement, can a franchisee waive claims under any applicable state franchise law via a signed statement?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) 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 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, a franchisee cannot waive claims under any applicable state franchise law through a signed statement. The FDD specifies that no statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship can waive any claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision takes precedence over any other term in any document executed in connection with the franchise.
This means that even if a franchisee signs a document that appears to waive their rights under state franchise law, that waiver will not be legally enforceable. This protection is designed to ensure that franchisees are not pressured into giving up their legal rights during the initial stages of the franchise relationship. It also prevents Buona from using acknowledgements or questionnaires to circumvent state franchise laws.
This type of clause is relatively common in franchise agreements to protect franchisees, especially concerning fraud or misrepresentation. Prospective Buona franchisees should understand that this provision offers a degree of security, ensuring that they retain their rights under state franchise laws regardless of any signed statements to the contrary.