For Rayyan Pizza Franchise LLC (Aw) franchises in Illinois, can a franchisee 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 waive claims under state franchise law or disclaim reliance on statements made by Aw or its representatives. This protection is explicitly stated in the Illinois addendum to the franchise agreement.
Specifically, any statement, questionnaire, or acknowledgment signed by a franchisee related to the franchise's commencement will not waive claims under applicable state franchise law, including claims of fraud. Furthermore, franchisees cannot disclaim reliance on statements made by Aw, franchise sellers, or anyone acting on Aw's behalf. This provision overrides any conflicting terms in any document associated with the franchise agreement.
This safeguard ensures that Illinois franchisees retain their legal rights and protections under the Illinois Franchise Disclosure Act. It prevents Aw from using contractual language to shield itself from liability for misrepresentations or omissions made during the franchise sales process. This protection is particularly important for prospective franchisees who rely on the information provided by Aw when making their investment decision.
The Illinois Franchise Disclosure Act provides additional rights and protections to franchisees within the state. For example, the FDD states that Illinois law governs the Franchise Agreement, and any provision designating jurisdiction and venue outside of Illinois is void, although arbitration may occur outside the state. Additionally, franchisees' rights upon termination and non-renewal are protected under Sections 19 and 20 of the Illinois Franchise Disclosure Act.