Can a Bang Cookies franchisor disclaim reliance on their behalf through a statement, questionnaire, or acknowledgement signed by the franchisee?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 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 acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of: (i) waiting any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on behalf of the Franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, specifically concerning the Illinois Franchise Disclosure Act, Bang Cookies cannot use any statement, questionnaire, or acknowledgement signed by a franchisee to disclaim reliance on their behalf. This means that Bang Cookies is unable to enforce any agreement where a franchisee waives claims against them under state franchise law, including claims of fraud in the inducement. This protection extends irrespective of any other terms within documents signed during the franchise commencement.
This provision is highly relevant for prospective Bang Cookies franchisees in Illinois. It ensures that franchisees retain their legal rights and recourse, even if they have signed documents that appear to waive those rights. This protects franchisees from potentially misleading or fraudulent behavior by the franchisor, as they cannot be forced to disclaim reliance on the franchisor's representations.
This type of clause is included to protect franchisees, especially in states with strong franchise laws like Illinois. It prevents franchisors from using contractual language to circumvent legal protections afforded to franchisees. Prospective franchisees should carefully review Item 23 of the FDD and consult with an attorney to fully understand their rights and protections under state law.