In Illinois, can a Best Brains franchisee waive compliance with the Illinois Franchise Disclosure Act?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD 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, franchisees in Illinois cannot waive compliance with the Illinois Franchise Disclosure Act. The Illinois Addendum explicitly states that any provision in the Franchise Agreement that attempts to bind the franchisee to waive compliance with any provision of the Illinois Franchise Disclosure Act or any other law of the State of Illinois is void. This protects franchisees by ensuring they cannot unknowingly or unwillingly give up their rights under Illinois law.
This protection extends to statements, questionnaires, or acknowledgments signed by the franchisee in connection with starting the franchise. These documents cannot waive any claims under applicable state franchise law, including claims of fraud in the inducement. Additionally, franchisees cannot disclaim reliance on statements made by Best Brains, its sellers, or anyone acting on their behalf. This provision overrides any other conflicting terms in any document related to the franchise agreement.
In practical terms, this means that Best Brains franchisees in Illinois retain all rights and protections afforded to them under the Illinois Franchise Disclosure Act. They cannot be forced or persuaded to sign away these rights, ensuring a baseline level of legal protection. This is a significant benefit for franchisees, as it prevents franchisors from using contractual loopholes to circumvent state laws designed to protect franchisees.