What effect do statements, questionnaires, or acknowledgments signed by a Pearce Bespoke franchisee have on waiving claims under North Dakota franchise law?
Pearce_Bespoke 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 39)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, any statement, questionnaire, or acknowledgment signed by a franchisee in connection with starting the franchise relationship does not waive claims under North Dakota franchise law. This includes claims related to fraud in the inducement or disclaiming reliance on statements made by Pearce Bespoke or its representatives. This provision overrides any other conflicting terms in any document signed during the franchise commencement.
This means that even if a Pearce Bespoke franchisee signs a document that appears to waive their rights, that waiver will not be effective under North Dakota law for franchise law claims. This protection extends to claims of fraud, ensuring franchisees cannot inadvertently relinquish their right to sue if they were misled into investing in the franchise.
This type of provision is included to protect franchisees and ensure they retain their legal rights under state franchise laws, regardless of any agreements they may sign. Prospective Pearce Bespoke franchisees in North Dakota should be aware of this protection, as it provides an added layer of security in their investment.