In Illinois, can a Better Blend franchisee waive claims under state franchise law?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
This Rider amends the Franchise Agreement [if applicable: and Multi-Unit Development Agreement] dated (the "Agreement"), between Better Blend Franchising, LLC, an Ohio ("BBF") and, a limited liability company ("Franchisee"). 1. Governing Law. Illinois law governs the Agreement. 2. lawsuit filed under any of the pursuant to the provisions of Title 9 of the United States Code. Waivers Void. In conformance with Section 41 of the Illinois Franchise Disclosure Act, notwithstanding any provision of the Agreement to the contrary, any condition, stipulation, or provision purporting to bind Franchisee to waive compliance with any provision of the Illinois Act or any other law of the State of Illinois is void. This Section shall not prevent Franchisee from entering into a settlement agreement or executing a general release regarding a potential or actual provisions of this Act, nor shall it prevent the arbitration of any claim 3. In conformance with Section 4 of the Illinois Franchise Disclosure Act, any Jurisdiction. provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the outside of Illinois. State of Illinois is void. However, a franchise agreement may provide for arbitration to occur 4. Franchisee's rights upon Termination and Non-Renewal are Termination/Non-Renewal. set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act. 5. Disclaimers. of: (i) waiving any claims under any applicable state franchise law, including fraud document executed in connection with the franchise. No statement, questionnaire or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect 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
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, Illinois franchisees cannot waive compliance with Illinois state laws. Specifically, any condition, stipulation, or 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 Illinois law is considered void. This protection ensures that franchisees retain their rights and protections under Illinois law, preventing franchisors from circumventing these legal safeguards through contractual clauses.
However, this does not prevent a Better Blend franchisee from entering into a settlement agreement or executing a general release regarding a potential or actual lawsuit filed under the provisions of the Illinois Franchise Disclosure Act. This exception allows franchisees to resolve disputes through negotiated settlements or releases, providing flexibility in managing legal issues while still upholding the core protections of the Act.
Additionally, the Illinois Rider to the Franchise Agreement specifies that no statement, questionnaire, or acknowledgment signed by a franchisee in connection with the commencement of the franchise relationship can waive any claims under applicable state franchise law, including claims of fraud. Nor can these documents disclaim reliance on any statement made by the franchisor or anyone acting on their behalf. This provision further reinforces the franchisee's rights by preventing the franchisor from using pre-agreement documents to undermine the franchisee's ability to pursue legal claims.