In Minnesota, can a Pearce Bespoke franchisee disclaim reliance on statements made by the franchisor?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
- (g) No statement, questionnaire, or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including, fraud in the
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, Minnesota law prevents a franchisee from waiving claims under applicable state franchise law. Specifically, any statement, questionnaire, or acknowledgement signed by a Pearce Bespoke franchisee cannot waive claims of fraud in the inducement or disclaim reliance on statements made by the franchisor, franchise seller, or anyone acting on their behalf. This protection is built into Minnesota's Franchise Act.
This means that even if a Pearce Bespoke franchisee signs a document suggesting they did not rely on the franchisor's statements, that agreement is not enforceable under Minnesota law. The franchisee retains the right to pursue claims based on misrepresentations made during the franchise sales process. This addendum explicitly overrides any conflicting terms in the franchise agreement or related documents.
This provision offers significant protection to prospective Pearce Bespoke franchisees in Minnesota, ensuring they cannot inadvertently forfeit their legal rights through contractual language. It aligns with the intent of franchise laws to protect franchisees from overreaching by franchisors with greater bargaining power. Franchisees should consult with an attorney to fully understand their rights and protections under Minnesota law.