Can an Alloy franchisee waive compliance with any provision of the Illinois Franchise Disclosure Act?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
In conformance with Section 41 of the Illinois Franchise Disclosure Act, any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
No disclaimer, questionnaire, clause, or statement signed by a franchisee in connection with the commencement of the franchise relationship shall be construed or interpreted as waiving any claim of fraud in the inducement, whether common law or statutory, or as disclaiming reliance on or the right to rely upon any statement made or information provided by any franchisor, broker or other person acting on behalf of the franchisor that was a material inducement to a franchisee's investment. This provision supersedes any other or inconsistent term of any document executed in connection with the franchise.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, specifically the Illinois Addendum, any attempt to waive compliance with the Illinois Franchise Disclosure Act is void. This protection is in place to ensure that franchisees are not pressured into relinquishing their rights under Illinois law.
This means that any clause, stipulation, or provision in the franchise agreement that appears to bind a franchisee to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is legally unenforceable. However, this does not prevent a franchisee from entering into a settlement agreement or executing a general release regarding a potential or actual lawsuit filed under the Illinois Franchise Disclosure Act, nor does it prevent arbitration of any claim under Title 9 of the United States Code.
Furthermore, no disclaimer, questionnaire, clause, or statement signed by an Alloy franchisee can be interpreted as waiving claims of fraud in the inducement or disclaiming reliance on statements made by Alloy or its representatives that were material to the franchisee's investment decision. This provision is designed to protect franchisees from being misled during the franchise sales process and ensures they can pursue legal remedies if they believe they were fraudulently induced into investing in the franchise. This protection supersedes any other conflicting terms in any document related to the franchise agreement.