What is the effect of a franchisee signing an acknowledgment in connection with the commencement of the Cicis franchise relationship in Indiana?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
The following provision applies if you or the franchise granted hereby are subject to the franchise registration or disclosure laws of Illinois, Indiana, Maryland or Virginia: 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 pages 64–65)
What This Means (2025 FDD)
According to the 2025 Cicis Franchise Disclosure Document, if a franchisee in Indiana signs an acknowledgment or questionnaire related to starting their franchise, that acknowledgment cannot waive any claims they might have under Indiana's franchise laws. This includes claims of fraud related to inducing them to invest in the franchise. Furthermore, the acknowledgment cannot disclaim reliance on any statements made by Cicis, its franchise sellers, or anyone acting on Cicis's behalf.
This provision is designed to protect franchisees by ensuring they retain their legal rights, even if they sign documents that might suggest otherwise. It specifically overrides any other conflicting terms in any document associated with the franchise agreement. This means Cicis cannot use such acknowledgments to prevent franchisees from pursuing legal action based on misrepresentations or violations of franchise law.
This protection extends to franchisees in Illinois, Maryland, and Virginia, as well. Prospective Cicis franchisees in these states should be aware that any acknowledgment they sign upon commencing the franchise relationship does not forfeit their right to make claims under applicable state franchise laws or disclaim reliance on franchisor statements.