What does the Pearce Bespoke franchisee acknowledge regarding misrepresentations made in obtaining the Franchise Agreement?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
- Franchisee has no knowledge of any representations by Franchisor or its officers, directors, shareholders, employees, sales representatives, agents or servants, about the business contemplated by the Franchise
Agreement that are contrary to the terms of the Franchise Agreement or the documents incorporated herein. Franchisee acknowledges that no representations or warranties are made or implied, except as specifically set forth in the Franchise Agreement. Franchisee represents, as an inducement to Franchisor's entry into this Agreement, that it has made no misrepresentations in obtaining the Franchise Agreement.
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- Franchisor expressly disclaims the making of, and Franchisee acknowledges that it has not received or relied upon, any warranty or guarantee, express or implied, as to the potential volume, profits or success of the business venture contemplated by the Franchise Agreement.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, a prospective franchisee acknowledges several key points regarding representations and warranties related to obtaining the Franchise Agreement. Specifically, the franchisee confirms they have no knowledge of any representations made by Pearce Bespoke or its representatives that contradict the terms of the Franchise Agreement or its incorporated documents.
Furthermore, the franchisee acknowledges that no representations or warranties, either express or implied, have been made beyond what is explicitly stated in the Franchise Agreement. This means Pearce Bespoke is only bound by what is written in the agreement, and verbal promises or assurances may not be enforceable. The franchisee also represents that they have not made any misrepresentations themselves to obtain the Franchise Agreement, which serves as an inducement for Pearce Bespoke to enter into the agreement.
This acknowledgement is significant because it limits the franchisee's ability to later claim they were misled or induced into signing the agreement based on information outside of the official documents. It reinforces the importance of thoroughly reviewing the Franchise Agreement and related documents before signing, as well as conducting independent due diligence. By signing, the franchisee is essentially stating they are entering the agreement based solely on the information contained within it and that they have been truthful in their dealings with Pearce Bespoke during the application process.
Pearce Bespoke expressly disclaims making any guarantees or warranties about the potential volume, profits, or success of the business venture. The franchisee acknowledges that they have not relied on any such guarantees. This underscores the inherent risks of starting a business and the understanding that the franchisee's success depends largely on their own abilities and efforts. This is a common clause in franchise agreements, as franchisors typically avoid making specific financial promises due to the many factors that can influence a franchisee's performance.