Can a Beehive Homes franchisee in Illinois disclaim reliance on statements made by the franchisor?
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, Illinois franchisees cannot disclaim reliance on statements made by the franchisor. Specifically, the Illinois Franchise Disclosure Act stipulates that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor or their representatives. This provision takes precedence over any conflicting terms in any document related to the franchise agreement. This protection is afforded to franchisees in Illinois.
This means that if a Beehive Homes franchisee in Illinois believes they were misled by statements made by the franchisor during the franchise sales process, they retain the right to pursue legal claims based on those statements. The franchisee's ability to bring such claims cannot be waived or disclaimed through any agreement or acknowledgment. This is a significant protection for franchisees, as it ensures they are not bound by clauses that could prevent them from seeking legal recourse if they believe they were provided with false or misleading information.
This provision is specific to Illinois due to the state's franchise laws. Franchise agreements often contain clauses where franchisees acknowledge they are not relying on any representations made by the franchisor outside of the written agreement. However, in Illinois, such clauses are unenforceable to the extent they would prevent a franchisee from claiming they relied on misrepresentations. This ensures that Beehive Homes franchisees in Illinois have stronger legal protections compared to franchisees in some other states.