Can a Buns On Fire franchisee in Illinois disclaim reliance on any statement by the franchisor?
Buns_On_Fire 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 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire FDD, franchisees in Illinois cannot disclaim reliance on statements made by the franchisor. 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 their representatives. This protection is built into the franchise agreement to safeguard franchisees' rights.
This provision is reinforced by the Illinois Franchise Disclosure Act, which voids any condition, stipulation, or provision that attempts to waive compliance with the Act. This ensures that franchisees cannot inadvertently or intentionally give up their rights under Illinois law. The FDD explicitly states that this protection supersedes any other conflicting terms in any document executed in connection with the franchise agreement.
In practical terms, this means that if a Buns On Fire franchisee in Illinois believes they were misled by statements made by the franchisor during the franchise sales process, they retain the right to pursue legal action, even if they signed documents that appear to disclaim reliance on those statements. This addendum provides an additional layer of protection for franchisees operating in Illinois.