For Brueggers Bagels franchises in Illinois, can a franchisee disclaim reliance on behalf of the franchisor?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
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 of: (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on behalf of the Franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — RECEIPTS (FDD pages 61–335)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, Illinois franchise law protects franchisees from unintentionally waiving their rights. Specifically, any statement, questionnaire, or acknowledgment signed by a Brueggers Bagels franchisee at the start of their franchise relationship cannot disclaim reliance on behalf of the franchisor. This means that franchisees cannot inadvertently give up their right to claim they relied on information provided by Brueggers Bagels during the franchise sales process. This protection extends to claims under state franchise law, including fraud in the inducement.
This provision is designed to prevent Brueggers Bagels from using standardized documents to shield themselves from liability for misrepresentations or omissions made to potential franchisees. The Illinois Franchise Disclosure Act aims to ensure that franchisees can make informed decisions based on accurate information. By preventing disclaimers of reliance, the law allows franchisees to hold Brueggers Bagels accountable for the information they provide.
This protection applies regardless of any other terms in any document executed in connection with the franchise agreement. This means that even if other parts of the agreement seem to suggest that a franchisee is waiving their right to claim reliance, this specific provision overrides those terms. This ensures that the franchisee's right to claim reliance on the franchisor's statements is upheld under Illinois law. Brueggers Bagels franchisees in Illinois can be assured that they retain the right to claim reliance on the franchisor's representations, despite any potentially conflicting language in franchise documents.