In Illinois, can a Browns Chicken franchisee disclaim reliance on statements made by the franchisor or their representatives through a signed statement?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 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 23 — RECEIPT (FDD pages 43–202)
What This Means (2025 FDD)
According to the 2025 Browns Chicken Franchise Disclosure Document, Illinois franchise law does not allow a franchisee to disclaim reliance on statements made by Browns Chicken or its representatives. Specifically, any statement, questionnaire, or acknowledgment signed by a franchisee cannot waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor or its representatives. This provision takes precedence over any conflicting terms in any document related to the franchise agreement.
This means that if a Browns Chicken franchisee in Illinois signs a document stating they did not rely on any representations made by the franchisor, that statement will not be legally binding. The franchisee retains the right to bring claims based on those representations, including claims of fraud. This protection is afforded by the Illinois Franchise Disclosure Act.
This safeguard is designed to protect prospective franchisees from potentially misleading information provided by the franchisor during the sales process. It ensures that franchisees can hold Browns Chicken accountable for the accuracy of their statements and representations, even if the franchisee has signed a document seemingly disclaiming reliance on those statements. This provision aims to create a fairer balance of power between the franchisor and franchisee in Illinois.