What is the effect of a franchisee signing a questionnaire in connection with the commencement of the Cicis franchise relationship in Virginia?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
C. No Waiver. 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, a specific provision addresses the effect of a franchisee signing a questionnaire or acknowledgment related to starting their franchise in certain states, including Virginia. This provision ensures that such documents do not waive the franchisee's rights under applicable state franchise laws.
Specifically, any statement, questionnaire, or acknowledgment signed by a Cicis franchisee in Virginia cannot be interpreted as a waiver of claims related to state franchise law. This includes claims of fraud in the inducement, which refers to misrepresentations that might have led the franchisee to invest in the franchise. Furthermore, these documents cannot disclaim the franchisee's reliance on statements made by Cicis, its franchise sellers, or anyone acting on Cicis's behalf.
This protection is significant for prospective Cicis franchisees in Virginia because it prevents Cicis from using standardized documents to inadvertently or intentionally limit the franchisee's legal rights. The provision explicitly overrides any conflicting terms in any document executed during the franchise commencement. This means that even if a document contains language that seems to waive certain rights, this specific clause ensures that the franchisee retains their ability to pursue claims under Virginia franchise law.
In essence, this clause provides an additional layer of security for franchisees, ensuring that they are not unknowingly giving up their legal protections when signing commencement documents. It aligns with franchise regulations in several states that aim to protect franchisees from potentially overreaching franchisor practices.