In Illinois, can a franchisee disclaim reliance on the Franchisor when commencing a C12 Group franchise relationship?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
No statement, questionnaire, or acknowledgment 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 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, franchisees in any state, including Illinois, cannot waive claims under applicable state franchise law, including fraud in the inducement. Furthermore, franchisees cannot disclaim reliance on any statement made by C12 Group, franchise sellers, or individuals acting on behalf of C12 Group. This protection is in place to ensure that franchisees are not bound by statements, questionnaires, or acknowledgments that would undermine their legal rights or ability to rely on representations made by the franchisor. This provision supersedes any conflicting terms in any document executed during the franchise commencement.
This means that even if a C12 Group franchisee signs a document suggesting they did not rely on the franchisor's statements, that agreement would be unenforceable under applicable state franchise laws. This is a significant protection for franchisees, as it allows them to pursue legal action if they believe they were misled during the franchise sales process, regardless of any disclaimers they may have signed. This type of clause is designed to protect franchisees from overreaching by franchisors and ensures a baseline level of fairness in the franchise relationship.
Many states have franchise laws in place to protect franchisees from deceptive or unfair practices. These laws often include provisions that prevent franchisors from requiring franchisees to waive their legal rights or disclaim reliance on the franchisor's representations. The inclusion of such a clause in the C12 Group franchise agreement reflects a commitment to compliance with these protective state laws and an acknowledgment of the importance of fair dealing in the franchise relationship.