Can a Bw Premier Collection franchisee disclaim reliance on statements made by the franchisor?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
No Waiver of Disclaimer of Reliance in Certain States. The following provision applies only to franchisees and franchises that are subject to the state franchise disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington or Wisconsin:
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, in certain states, a franchisee cannot waive claims under state franchise law or disclaim reliance on statements made by the franchisor or its representatives. This protection is specifically called out in addenda for franchisees in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin.
This means that if you are a Bw Premier Collection franchisee in one of these states, any agreement you sign that attempts to prevent you from claiming you relied on the franchisor's statements (or that waives your rights regarding fraud in the inducement) will not be enforced. This provision is designed to protect franchisees from overreaching by the franchisor.
For prospective Bw Premier Collection franchisees, this is a significant protection. It ensures that the franchisee can hold the franchisor accountable for any misrepresentations made during the franchise sales process, regardless of any disclaimers or waivers signed. This does not mean that franchisees can make frivolous claims, but it does provide a legal basis to seek recourse if the franchisor's statements prove to be false or misleading. This protection supersedes any other term in any document executed in connection with the franchise in those states.