Can a Beehive Homes franchisee disclaim reliance on statements made by the franchisor in Illinois?
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, franchisees in Illinois cannot disclaim reliance on statements made by the franchisor. Specifically, the Illinois Franchise Disclosure Act ensures that no agreement signed by a franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Beehive Homes or its representatives. This protection is explicitly stated to supersede any other conflicting terms in the franchise agreement. This provision is part of an Illinois addendum to both the Franchise Agreement and the Franchise Disclosure Document.
This means that any statement, questionnaire, or acknowledgment signed by a Beehive Homes franchisee in Illinois cannot be used to argue that the franchisee did not rely on the franchisor's statements when entering the franchise agreement. This is particularly relevant if the franchisee later claims they were misled or induced into the agreement based on false or misleading information provided by Beehive Homes.
This protection is significant for prospective Beehive Homes franchisees in Illinois, as it ensures they retain their legal rights to pursue claims against the franchisor if they believe they were provided with inaccurate or fraudulent information. It prevents Beehive Homes from using standard contract clauses to shield themselves from liability for misrepresentations made during the franchise sales process. This provision reflects Illinois' commitment to protecting franchisees and ensuring fair dealing in franchise relationships.