Can a Pearce Bespoke franchisor disclaim reliance through a statement signed by the franchisee?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
- Franchisee agrees that no claims of success or failure have been made to it or him or her prior to signing the Franchise Agreement and that it/she/he understands all the terms and conditions of the Franchise Agreement. Franchisee further acknowledges that the Franchise Agreement contains all oral and written agreements, representations and arrangements between the parties hereto, and any rights which the respective parties hereto may have had under any other previous contracts are hereby cancelled and terminated, and that this Agreement cannot be changed or terminated orally.
Initial
- 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.
Initial
- 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.
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- Franchisee acknowledges that Franchisor's approval or acceptance of Franchisee's Business location does not constitute a warranty, recommendation, or endorsement of the location for the Franchised Business, nor any assurance by Franchisor that the operation of the Franchised Business at the premises will be successful or profitable.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, the franchise agreement contains a clause addressing reliance on statements made by the franchisor. Specifically, the agreement includes provisions where the franchisee acknowledges they are not relying on any claims of success or failure made by Pearce Bespoke prior to signing the agreement. The franchisee also agrees that the franchise agreement encompasses all oral and written agreements between the parties, superseding any prior contracts. Furthermore, the agreement stipulates that it cannot be changed or terminated orally.
Pearce Bespoke's franchise agreement also states that the franchisee has no knowledge of any representations made by the franchisor that contradict the terms of the agreement or its incorporated documents. The franchisee acknowledges that no representations or warranties are made or implied, except as explicitly stated in the franchise agreement. This acknowledgement serves as an inducement for Pearce Bespoke to enter into the agreement, based on the franchisee's representation that they have not made any misrepresentations in obtaining the franchise.
Additionally, Pearce Bespoke expressly disclaims any warranty or guarantee regarding the potential volume, profits, or success of the business venture, and the franchisee acknowledges that they have not relied upon any such warranty or guarantee. The franchisee also acknowledges that Pearce Bespoke's approval of the business location does not constitute a warranty, recommendation, or endorsement of the location, nor any assurance of success or profitability. These disclaimers and acknowledgements are designed to protect Pearce Bespoke from potential claims based on representations not explicitly included in the franchise agreement.