Can a statement, questionnaire, or acknowledgment signed by a Pearce Bespoke franchisee disclaim reliance on statements made by the franchisor?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee (or developer) 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 in connection with the franchise.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, a franchisee cannot waive claims or disclaim reliance on franchisor statements. Specifically, any statement, questionnaire, or acknowledgment signed by a Pearce Bespoke franchisee in connection with starting the franchise relationship cannot waive claims under state franchise law, including claims related to fraud.
This also means that a Pearce Bespoke franchisee cannot disclaim reliance on any statement made by Pearce Bespoke, its franchise sellers, or anyone acting on its behalf. This protection is in place to prevent franchisees from inadvertently giving up their legal rights based on statements made during the franchise sales process.
This provision takes precedence over any other conflicting terms in any document executed in connection with the franchise. This ensures that the franchisee's rights are protected, regardless of what other agreements might state. However, this protection is void in California and Washington.