For a Beehive Homes franchise in Illinois, what does the provision regarding waiver of claims and disclaiming reliance supersede?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
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 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the Illinois addendum specifies that for franchisees in Illinois, any statement, questionnaire, or acknowledgment signed in connection with starting the franchise cannot waive claims under state franchise law, including claims related to fraud in the inducement.
Specifically, this provision also prevents franchisees from disclaiming reliance on statements made by Beehive Homes, its sellers, or anyone acting on its behalf. This means a franchisee cannot later be held to have agreed they were not relying on information provided by Beehive Homes during the franchise sales process.
This protection for Illinois franchisees supersedes any other conflicting term in any document related to the franchise agreement. This ensures that the franchisee's right to pursue claims of fraud or misrepresentation is upheld, regardless of other clauses in the franchise agreement or related documents.