Regarding Buildingstars franchises in Illinois, does any statement signed by a franchisee waive claims under state franchise law, including fraud in the inducement?
Buildingstars 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 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 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, franchisees in Illinois are protected by the Illinois Franchise Disclosure Act regarding waivers. Specifically, any statement, questionnaire, or acknowledgment signed by a Buildingstars franchisee cannot waive claims under Illinois franchise law. This includes claims related to fraud in the inducement.
This provision ensures that Buildingstars franchisees in Illinois retain their legal rights and protections under state law, regardless of any agreements or statements made during the commencement of the franchise relationship. It prevents Buildingstars from using franchisee acknowledgements to circumvent Illinois franchise law.
This protection extends to disclaiming reliance on statements made by Buildingstars or anyone acting on their behalf. This means a franchisee cannot waive their right to claim they relied on misrepresentations made by Buildingstars during the franchise sales process. This provision supersedes any other term in any document executed in connection with the franchise, reinforcing the protection for Illinois franchisees.