What is the effect of a franchisee signing a statement in connection with the commencement of the Cicis franchise relationship in Maryland?
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 Cicis's 2025 Franchise Disclosure Document, if a franchisee is subject to the franchise registration or disclosure laws of Maryland, any statement, questionnaire, or acknowledgment signed in connection with starting the franchise relationship will not waive claims under applicable state franchise law. This includes claims of fraud in the inducement. Additionally, these documents cannot disclaim reliance on any statement made by Cicis, its franchise sellers, or anyone acting on Cicis's behalf. This provision takes precedence over any conflicting terms in any document related to the franchise agreement.
In practical terms, this means that a Cicis franchisee in Maryland cannot unknowingly give up their legal rights through standard paperwork at the beginning of their franchise journey. For example, if Cicis made misleading claims to induce the franchisee to invest, the franchisee can still pursue a fraud claim even if they signed a document that seems to waive such claims. This protection is designed to ensure that franchisees are not taken advantage of and can hold Cicis accountable for their representations.
This type of clause is included to protect franchisees in states with franchise-specific laws, as these states have determined that franchisees need additional safeguards. The FDD explicitly states that this provision supersedes any other term of any document executed in connection with the franchise. Cicis franchisees in Maryland should be aware of this protection, ensuring they understand their rights and are not pressured into waiving them inadvertently.