Can an Aw franchisee in Illinois disclaim reliance on statements made by the franchisor?
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, franchisees in Illinois cannot disclaim reliance on statements made by the franchisor. Specifically, any statement, questionnaire, or acknowledgment signed by a franchisee in Illinois cannot waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Aw or its representatives. This protection supersedes any other conflicting terms in any document related to the franchise agreement. This provision is included in the Illinois addendum to the franchise agreement.
This means that Aw franchisees in Illinois retain the right to pursue legal action based on misrepresentations or fraudulent statements made by Aw during the franchise sales process. This protection is afforded by the Illinois Franchise Disclosure Act, and Aw cannot contractually prevent a franchisee from exercising these rights. This ensures that franchisees can hold Aw accountable for the accuracy and truthfulness of the information provided during the franchise sales process.
This type of provision is not uncommon in franchise agreements, particularly in states with strong franchise protection laws. The Illinois Franchise Disclosure Act aims to protect franchisees from unfair or deceptive practices by franchisors. By preventing Aw from including clauses that waive these protections, the law ensures a more equitable relationship between the franchisor and franchisee. Prospective franchisees in Illinois should be aware of this protection and understand their rights under the Illinois Franchise Disclosure Act.