Can a franchisee disclaim reliance on behalf of the Franchisor in connection with the commencement of the Pearce Bespoke franchise relationship?
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 Pearce Bespoke's 2025 Franchise Disclosure Document, a franchisee cannot disclaim reliance on any statement made by the franchisor or anyone acting on their behalf. This means that any claims, promises, or representations made by Pearce Bespoke during the franchise sales process are considered binding, and the franchisee cannot waive their right to hold Pearce Bespoke accountable for those statements.
This provision protects prospective Pearce Bespoke franchisees by ensuring they can rely on the information provided by the franchisor when making their investment decision. It prevents Pearce Bespoke from later arguing that the franchisee agreed not to rely on certain statements, which could leave the franchisee vulnerable if those statements turn out to be false or misleading.
This requirement supersedes any other conflicting terms in any document executed with the franchise, reinforcing the importance of the franchisee's ability to rely on the franchisor's representations. This protection is particularly important for franchisees who may be less experienced in business or franchising, as it ensures they are not pressured into waiving their rights based on the franchisor's statements.