What is the effect of a statement, questionnaire or acknowledgment signed by a Bw Premier Collection franchisee regarding reliance on statements made by the franchisor?
Bw_Premier_Collection 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 any 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 54–203)
What This Means (2025 FDD)
According to the 2025 Bw Premier Collection FDD, certain states have laws protecting franchisees from unintentionally waiving their rights. Specifically, in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin, any statement, questionnaire, or acknowledgment signed by a Bw Premier Collection franchisee cannot waive claims under state franchise law. This includes claims related to fraud in the inducement or disclaiming reliance on statements made by the franchisor or their representatives. This protection is designed to ensure that franchisees in these states are not inadvertently giving up their legal rights when starting their franchise.
This provision is crucial for prospective Bw Premier Collection franchisees in the listed states because it safeguards their ability to pursue legal action if they believe they were misled or defrauded during the franchise sales process. It prevents Bw Premier Collection from using standard form agreements to circumvent state franchise laws that are in place to protect franchisees. The FDD explicitly states that this provision supersedes any other conflicting terms in any document executed in connection with the franchise agreement, reinforcing its importance.
For a potential Bw Premier Collection franchisee, this means that even if they sign a document that appears to disclaim reliance on the franchisor's statements, that disclaimer will not be enforceable in those specific states. This protection helps to level the playing field, ensuring that franchisees are not bound by clauses that could unfairly limit their legal recourse. Franchisees should consult with an attorney to fully understand their rights and the implications of this provision in their specific state.