For Bft franchises in Illinois, can a franchisee waive claims under applicable state franchise law, including fraud in the inducement, through any signed statement?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
ILLINOIS
- No Disclaimer. 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.
- The "Summary" section of Item 17.u, entitled Dispute resolution by arbitration or mediation, and the "Summary" section of Item 17.v, entitled Choice of forum, are supplemented with the following:
Section 4 of the Illinois Franchise Disclosure Act provides that any provision in a franchise agreement that designates jurisdiction or venue outside the State of Illinois is void. However, a franchise agreement may provide for arbitration outside of Illinois.
- The "Summary" section of Item 17.w, entitled Choice of law, is deleted and replaced with the following:
Except for the U.S. Federal Arbitration Act and other federal laws in the U.S., the laws of the State of Illinois will govern the Franchise Agreement and Multi-Unit Agreement.
- The following paragraphs are added to the end of Item 17:
Section 41 of the Illinois Franchise Disclosure Act provides that any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
Your rights upon termination and non-renewal of a franchise agreement/multi-unit agreement are subject to sections 19 and 20 of the Illinois Franchise Disclosure Act.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, a franchisee in Illinois cannot waive claims under applicable state franchise law, including fraud in the inducement, through any signed statement, questionnaire, or acknowledgment made in connection with starting the franchise relationship. This protection is explicitly stated in Item 17 of the FDD, reinforcing the franchisee's rights under the Illinois Franchise Disclosure Act. This provision overrides any other conflicting terms in any document related to the franchise agreement.
This means that any attempt by Bft to include a clause that requires a franchisee to waive their rights under Illinois franchise law is void. The Illinois Franchise Disclosure Act specifically prohibits conditions or stipulations that would bind a person acquiring a franchise to waive compliance with the Act or any other Illinois law. This ensures that franchisees retain their legal rights and protections under Illinois law, regardless of any agreement they may sign.
For a prospective Bft franchisee in Illinois, this is a significant safeguard. It ensures that they cannot inadvertently or unknowingly give up their legal rights through standard paperwork. This protection extends to claims of fraud in the inducement, meaning that if a franchisee believes they were misled into signing the agreement, they can still pursue legal action, and Bft cannot use a signed statement to prevent them from doing so. This provision offers a level of security and recourse for franchisees in case of disputes or misrepresentations.