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In Illinois, what is the effect of a franchisee signing an agreement to waive compliance with the Illinois Franchise Disclosure Act when acquiring a C12 Group franchise?

C12_Group Franchise · 2025 FDD

Answer 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, any condition, stipulation, or provision that attempts to bind a person acquiring a C12 Group franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is considered void. This means that even if a franchisee signs an agreement intending to waive their rights under the Illinois Franchise Disclosure Act, that waiver is not legally enforceable.

This protection ensures that franchisees in Illinois retain all the rights and protections afforded to them by Illinois franchise law. It prevents C12 Group from including clauses in their agreements that might pressure franchisees into giving up their legal rights. This is a standard protection in many franchise laws, designed to balance the power dynamic between franchisors and franchisees.

Furthermore, no statement, questionnaire, or acknowledgment signed by a C12 Group franchisee in connection with starting the franchise can waive claims under any applicable state franchise law, including claims of fraud in the inducement, or disclaim reliance on any statement made by C12 Group or its representatives. This provision reinforces the franchisee's ability to pursue legal remedies if they believe they were misled or defrauded during the franchise sales process. This protection supersedes any other conflicting terms in any document executed related to the franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.