Is a condition in the Best Brains Franchise Agreement that requires a franchisee to waive compliance with the Illinois Franchise Disclosure Act valid?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
ILLINOIS ADDENDUM TO THE DISCLOSURE DOCUMENT
As to franchises governed by the Illinois Franchise Disclosure Act, if any of the terms of the Disclosure Document are inconsistent with the terms below, the terms below control.
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- Any condition, stipulation, or provision of the Franchise Agreement purporting to bind you to waive compliance with any provision of the Illinois Franchise Disclosure Act or any other law of the State of Illinois is void.
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- The following text is added to the Disclosure 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 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, any condition within the franchise agreement that compels a franchisee to waive compliance with any provision of the Illinois Franchise Disclosure Act or any other Illinois law is considered void. This stipulation is part of the Illinois Addendum to the Disclosure Document, which takes precedence over any conflicting terms in the standard agreement for franchises governed by Illinois law.
This means that Best Brains franchisees in Illinois cannot be forced to relinquish their rights or protections under Illinois franchise law. The FDD emphasizes this point by stating that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law, including claims related to fraud in the inducement, or disclaim reliance on statements made by Best Brains. This provision is designed to protect franchisees from unknowingly giving up their legal rights.
For a prospective Best Brains franchisee in Illinois, this addendum offers significant protection. It ensures that the franchisee retains all rights and remedies available under Illinois law, regardless of what the standard franchise agreement might otherwise stipulate. This protection is particularly important in the context of franchise relationships, where there can be a power imbalance between the franchisor and franchisee. The Illinois Franchise Disclosure Act aims to level the playing field and prevent franchisors from imposing unfair or overreaching terms.