What effect does a franchisee's waiver of claims under state franchise law have in Illinois for Aw franchises?
Aw 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 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, any attempt by Aw to have a franchisee waive their rights under Illinois franchise law is void. Specifically, no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under any applicable state franchise law, including claims of fraud in the inducement. This protection also prevents a franchisee from disclaiming reliance on statements made by Aw or its representatives. This provision overrides any conflicting terms in any document related to the franchise agreement.
This means that Aw franchisees in Illinois retain their full legal rights under the Illinois Franchise Disclosure Act, regardless of any agreement they may sign. This protection extends to claims of fraud, ensuring franchisees can pursue legal action if they believe they were misled during the franchise sales process. The FDD emphasizes this point multiple times, reinforcing the state's commitment to protecting franchisees.
Furthermore, the Illinois addendum specifies that Illinois law governs the franchise agreement, and any clause designating jurisdiction and venue outside of Illinois is void, although arbitration may occur outside the state. The franchisee's rights regarding termination and non-renewal are also explicitly governed by Sections 19 and 20 of the Illinois Franchise Disclosure Act. This comprehensive approach ensures that Aw franchisees in Illinois have strong legal protections and recourse within the state's legal framework.