For Bang Cookies, under what condition is a waiver of any term valid?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE.
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- THIS DISCLOSURE DOCUMENT CONTAINS A SUMMARY ONLY OF CERTAIN MATERIAL PROVISIONS OF THE FRANCHISE AGREEMENT AND THE CONTRACT OR AGREEMENT SHOULD BE REFERRED TO FOR A STATEMENT OF ALL RIGHTS, CONDITIONS, RESTRICTIONS AND OBLIGATIONS OF BOTH THE FRANCHISOR AND THE FRANCHISEE.
Illinois FDD Amendment
Amendments to the Bang Cookies Franchise Disclosure Document
DISCLOSURE REQUIRED BY THE STATE OF ILLINOIS
Illinois law governs the Franchise Agreement.
In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a Franchise Agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, a Franchise Agreement may provide for arbitration to take place outside of Illinois.
Your rights upon Termination and Non-Renewal are set forth in Sections 19 and 20 of the Illinois Franchise Disclosure Act.
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.
Indiana FDD Amendment
Amendments to the Bang Cookies Franchise Disclosure Document
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Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, the validity of a waiver of any term is subject to specific state laws. In Illinois, any condition that requires a person acquiring a franchise to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is considered void. This means Bang Cookies cannot enforce any agreement where a franchisee gives up their rights under Illinois franchise law.
Furthermore, in Illinois, any statement, questionnaire, or acknowledgment signed by a franchisee at the start of the franchise relationship cannot waive claims under state franchise law, including claims of fraud, or disclaim reliance on behalf of Bang Cookies. This provision takes precedence over any other conflicting term in any document related to the franchise agreement.
In Hawaii, the franchise agreement is amended to ensure that all rights and causes of action arising from the Hawaii Franchise Investment Law remain in force. The intent is to satisfy the non-waiver provisions of the Hawaii Franchise Investment Law, which provides rights to the franchisee concerning non-renewal, termination, and transfer of the Franchise Agreement. If any sub-article in the agreement is inconsistent with the Hawaii Franchise Investment Law, the Hawaii Franchise Investment Law will take precedence.