For Rayyan Pizza Franchise LLC (Aw) franchises in Illinois, can a franchisee waive compliance with the Illinois Franchise Disclosure Act?
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, franchisees in Illinois cannot waive compliance with the Illinois Franchise Disclosure Act. The Illinois addendum to the franchise agreement explicitly states that any provision that attempts to bind a person acquiring a franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void. This protection ensures that franchisees in Illinois retain all rights and protections afforded to them under Illinois law, regardless of any conflicting terms in the franchise agreement.
This provision is reinforced by additional clauses within the addendum. No statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Aw or its representatives. This further solidifies the franchisee's rights and prevents Aw from using acknowledgments or other documents to circumvent the protections of Illinois franchise law.
Furthermore, certain sections of the franchise agreement, such as those concerning governing law, consent to jurisdiction, and limitations of claims, are amended to ensure they do not conflict with the Illinois Franchise Disclosure Act. Specifically, any provision that would otherwise be enforceable but violates Section 4 of the Illinois Franchise Disclosure Act is void. Claims arising under the Illinois Franchise Disclosure Act must be brought in an Illinois court with the appropriate jurisdiction. These stipulations provide additional clarity and legal recourse for franchisees operating in Illinois, ensuring Aw franchisees cannot inadvertently or intentionally relinquish their legal rights under Illinois law.