Does the Pearce Bespoke franchise agreement allow a franchisee to disclaim reliance on statements made by the franchisor?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
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 with the franchise.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, the franchise agreement does not allow a franchisee to disclaim reliance on statements made by the franchisor. The document states that the provision supersedes any other term of any document executed with the franchise. This means that any attempt by a franchisee to deny reliance on statements made by Pearce Bespoke or its representatives is invalid.
This clause protects the franchisee by ensuring that they can hold Pearce Bespoke accountable for any representations made during the franchise sales process. It prevents Pearce Bespoke from later arguing that the franchisee did not rely on those statements when making their investment decision. This is a standard practice in franchising to protect franchisees from misleading or false claims made by franchisors.
Prospective Pearce Bespoke franchisees should carefully review all statements made by the franchisor and its representatives during the sales process and ensure that these statements are consistent with the information provided in the Franchise Disclosure Document and the franchise agreement. If there are any discrepancies, franchisees should seek clarification from Pearce Bespoke before signing the agreement.