Does the Illinois Addendum supersede other terms in the C12 Group franchise agreement regarding liability waivers?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
In conformance with Section 41 of the Illinois Franchise Disclosure Act, 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.
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 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, the Illinois addendum addresses the enforceability of certain waivers within the franchise agreement. Specifically, it states that any condition, stipulation, or provision that requires a franchisee to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void. This means that C12 Group cannot enforce any clause that forces a franchisee to give up their rights under Illinois law.
Furthermore, the Illinois addendum clarifies that any statement, questionnaire, or acknowledgment signed by a franchisee at the start of the franchise relationship cannot waive claims under state franchise law, including claims of fraud in the inducement. It also prevents C12 Group from using these documents to disclaim reliance on their own statements. This provision explicitly supersedes any other conflicting term in any document related to the franchise agreement. Therefore, C12 Group franchisees in Illinois are protected from unknowingly waiving their rights through standard documents.
In practical terms, this means that if a C12 Group franchisee in Illinois believes they have a claim against the franchisor under Illinois franchise law (such as a claim for misrepresentation), they cannot be prevented from pursuing that claim based on a waiver or disclaimer contained in the franchise agreement or related documents. This protection is particularly important because franchise agreements often contain provisions that could be interpreted as waivers of certain rights. The Illinois addendum ensures that these provisions are not enforceable in Illinois to the extent that they conflict with Illinois law. This type of addendum is common to protect franchisees in states with franchise-specific laws.