Under what conditions in the Aw franchise agreement or Franchisee Disclosure Questionnaire is a waiver of compliance with the Illinois Franchise Disclosure Act considered void?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
Any condition, stipulation or provision in this Agreement or in the Franchisee Disclosure Questionnaire purporting to bind Franchisee to waive compliance with any provision of the Illinois Franchise Disclosure Act or any other law of the State of Illinois is void.
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 to waive compliance with the Illinois Franchise Disclosure Act (IFDA) is void. Specifically, any condition, stipulation, or provision within the franchise agreement or the Franchisee Disclosure Questionnaire that seeks to bind a franchisee to waive compliance with any provision of the IFDA or any other Illinois law is considered void. This protection is also affirmed in acknowledgements signed during the commencement of the franchise relationship.
This means that Aw franchisees in Illinois cannot be forced to surrender their rights under the IFDA, ensuring they retain the legal protections afforded by the Act. This includes rights related to disclosure, fair dealing, and termination. The Illinois addendum reinforces this by stating that any provision purporting to waive compliance with the IFDA is void, further solidifying the franchisee's rights.
This provision is favorable for prospective Aw franchisees in Illinois, as it prevents the franchisor from circumventing state law through contractual clauses. It ensures that franchisees retain their legal rights and protections under the IFDA, regardless of any agreement they may sign. This protection extends to claims of fraud in the inducement and disclaiming reliance on statements made by the franchisor or its representatives.