Can a statement, questionnaire, or acknowledgment signed by a Pearce Bespoke franchisee waive claims under state franchise law?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
- No statement, questionnaire, or acknowledgment 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 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 statement, questionnaire, or acknowledgment signed by a franchisee cannot waive claims under state franchise law. Specifically, Item 22 of the FDD states that no such document can waive claims under any applicable state franchise law, including claims of fraud in the inducement, or disclaim reliance on statements made by Pearce Bespoke or its representatives. This provision takes precedence over any other conflicting terms in any document related to the franchise agreement.
This means that even if a franchisee signs a document that appears to waive their rights, that waiver will not be legally enforceable with respect to state franchise law. This protection is designed to prevent Pearce Bespoke from using these documents to shield itself from liability for violating franchise laws or making misleading statements.
Several addenda to the Pearce Bespoke Franchise Agreement for specific states, including Maryland, North Dakota, and Illinois, reiterate this point. These addenda emphasize that waivers, releases, or limitations of liability within franchisee acknowledgment statements are not intended to, and will not, act as a release, estoppel, or waiver of any liability incurred under the respective state's franchise laws. This consistent reinforcement across multiple state-specific addenda underscores the importance of protecting franchisees' rights under state franchise laws.
Prospective Pearce Bespoke franchisees should be aware of this protection, as it ensures they retain their legal rights under state franchise laws, regardless of any statements they may sign during the franchise commencement process. This provision aims to create a fairer balance of power between the franchisor and franchisee, safeguarding the franchisee's ability to pursue legal claims if necessary.