What is the intent of the provision regarding non-waiver in the Bw Premier Collection Rider?
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, the "No Waiver of Disclaimer of Reliance" provision in the Rider is intended to protect franchisees by preventing them from unintentionally waiving rights or disclaiming reliance on franchisor statements during the franchise relationship's commencement. This provision ensures that franchisees retain their ability to pursue claims under applicable state franchise laws, including claims related to fraud in the inducement. It also ensures that franchisees can rely on statements made by the franchisor or its representatives.
This provision is included in the Rider to override any conflicting terms in other documents executed in connection with the franchise agreement. This means that even if a franchisee signs a statement, questionnaire, or acknowledgment that appears to waive certain rights or disclaim reliance on the franchisor's statements, this provision ensures that such waivers or disclaimers are ineffective. The provision specifically applies to claims under state franchise law and reliance on statements made by the franchisor or those acting on its behalf.
Notably, the FDD includes specific versions of this provision tailored for franchisees in certain states, such as California, Hawaii, Indiana, Michigan, South Dakota, Virginia, and Wisconsin, as well as Maryland and Rhode Island. These state-specific versions reinforce the protection of franchisees' rights under the franchise laws of those states. The inclusion of such a provision is a positive sign for prospective franchisees, as it demonstrates Bw Premier Collection's intent to comply with franchise laws and protect franchisees' legal rights, especially regarding reliance on information provided during the franchise sales process.
For a prospective Bw Premier Collection franchisee, this non-waiver provision offers a degree of security. It confirms that signing standard documents at the start of the franchise does not inadvertently forfeit their right to bring future claims against Bw Premier Collection if, for example, the franchisee believes they were induced into the agreement by fraudulent statements or misrepresentations. This protection is particularly valuable given the complexity of franchise agreements and the potential for information asymmetry between franchisor and franchisee.