In Illinois, can a Best Brains franchisee disclaim reliance on any statement made by the franchisor?
Best_Brains 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 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, Illinois franchise law protects franchisees from unintentionally waiving their rights. Specifically, any statement, questionnaire, or acknowledgment signed by a Best Brains franchisee at the start of their franchise relationship cannot disclaim reliance on statements made by the franchisor or anyone acting on their behalf. This includes protection against waiving claims related to fraud in the inducement.
This provision in the Illinois addendum ensures that Best Brains franchisees cannot inadvertently forfeit their right to pursue legal claims based on misrepresentations or misleading statements made during the franchise sales process. It strengthens the franchisee's position by preventing the franchisor from using standard contractual language to shield themselves from liability for their statements.
This protection supersedes any conflicting terms in any document executed in connection with the Best Brains franchise agreement. This means that even if other parts of the agreement seem to suggest a waiver of reliance, this specific clause in the Illinois addendum takes precedence, reinforcing the franchisee's rights under Illinois law.