What does the addendum say about the effect of acknowledgements signed by Aw franchisees in Illinois?
Aw 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 pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the Illinois addendum addresses the enforceability of acknowledgments signed by franchisees. Specifically, any statement, questionnaire, or acknowledgment signed by an Aw franchisee in Illinois related to the start of the franchise relationship cannot waive claims under Illinois franchise law. This includes claims related to fraud in the inducement. Furthermore, franchisees cannot disclaim reliance on statements made by Aw or anyone acting on its behalf. This addendum provision takes precedence over any conflicting terms in any document associated with the franchise agreement.
In practical terms, this means that if an Aw franchisee in Illinois signs a document acknowledging certain conditions or waiving certain rights, those acknowledgments will not be valid if they conflict with the Illinois Franchise Disclosure Act. This protects franchisees from inadvertently giving up their legal rights or remedies under state law. For example, even if a franchisee signs a statement saying they did not rely on any representations made by Aw, they can still bring a claim for fraud if those representations turn out to be false.
This type of provision is common in franchise agreements in states with franchise-specific laws, as these laws often aim to protect franchisees from overreaching by franchisors. Prospective Aw franchisees in Illinois should carefully review the addendum and understand their rights under the Illinois Franchise Disclosure Act. They should also consult with an attorney to ensure they fully understand the implications of this provision and any other terms in the franchise agreement.