Regarding the commencement of a Baymont Inn Suites franchise relationship in Illinois, what effect does a franchisee's signed statement, questionnaire, or acknowledgment have on waiving claims under state franchise law or disclaiming reliance on statements made by the franchisor?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
The following provisions supersede the Franchise Disclosure Document and apply to all licenses or franchises offered and sold in the State of Illinois:
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- 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.
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- 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.
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- Each provision of this Addendum to the Franchise Disclosure Document shall be effective only to the extent that with respect to such provision, the jurisdictional requirements of the Illinois Franchise Disclosure Act of 1987 are met independently without reference to this Addendum.
Source: Item 23 — RECEIPTS (FDD pages 97–443)
What This Means (2025 FDD)
According to Baymont Inn Suites's 2025 Franchise Disclosure Document, specifically the addendum pertaining to Illinois, any statement, questionnaire, or acknowledgment signed by a franchisee at the start of their franchise relationship will not waive claims under Illinois franchise law. This includes claims related to fraud in the inducement. Furthermore, these documents cannot disclaim reliance on statements made by Baymont Inn Suites, its franchise sellers, or anyone acting on their behalf. This provision takes precedence over any conflicting terms in any document associated with the franchise agreement. This protection is provided in accordance with Section 41 of the Illinois Franchise Disclosure Act, ensuring franchisees cannot waive compliance with the Act or any other Illinois law.
This means that even if a franchisee signs a document that appears to waive their rights or disclaim reliance on the franchisor's statements, those waivers or disclaimers are void under Illinois law. This is a significant protection for franchisees, as it prevents Baymont Inn Suites from using such documents to shield themselves from liability for misrepresentations or other violations of franchise law. The Illinois Franchise Disclosure Act aims to protect potential franchisees by ensuring they cannot unknowingly surrender their legal rights through standard contractual language.
It is important to note that each provision of the Illinois addendum is effective only to the extent that the jurisdictional requirements of the Illinois Franchise Disclosure Act of 1987 are met independently, without relying on the addendum itself. This implies that the protections afforded by the addendum are contingent upon the specific circumstances and legal requirements of each case under Illinois law. Prospective franchisees should consult with an attorney to fully understand their rights and the implications of the Illinois Franchise Disclosure Act.