Can a Pearce Bespoke franchisee disclaim reliance on behalf of the Franchisor through any statement, questionnaire, or acknowledgement?

According to the 2025 Pearce Bespoke Franchise Disclosure Document, a franchisee cannot disclaim reliance on statements made by the franchisor or those acting on their behalf. Specifically, any statement, questionnaire, or acknowledgment signed by a franchisee cannot waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor, franchise seller, or anyone acting for the franchisor. This provision takes precedence over any conflicting terms in any document related to the franchise agreement.

This means that Pearce Bespoke franchisees retain their legal rights and protections, particularly regarding claims of fraud or misrepresentation. The franchisee's ability to pursue legal recourse is protected, as they cannot be compelled to waive their right to claim they relied on misleading statements made by Pearce Bespoke during the franchise sales process. This protection is crucial for franchisees who might otherwise be pressured into relinquishing their rights through standard contractual language.

This clause ensures that franchisees are not bound by agreements that force them to waive their rights to make claims against the franchisor based on misrepresentations or fraud. It strengthens the franchisee's position by preventing Pearce Bespoke from using contractual terms to avoid liability for their statements or actions during the franchise sales process. This protection is particularly important in the context of franchise law, where franchisees often rely heavily on the franchisor's representations when making their investment decisions.