Does the Cicis franchise agreement allow a franchisee to disclaim reliance on behalf of the franchisor?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
(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.
ILLINOIS
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- 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, inclu
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 58–64)
What This Means (2025 FDD)
According to the 2025 Cicis Franchise Disclosure Document, the franchise agreement does not allow a franchisee to disclaim reliance on behalf of the franchisor. Specifically, for franchisees in Illinois, Maryland, and Virginia, the FDD states that no statement, questionnaire, or acknowledgment signed by a franchisee can disclaim reliance on any statement made by the franchisor, franchise seller, or anyone acting on behalf of Cicis. This protection is designed to prevent franchisees from inadvertently waiving their rights to hold Cicis accountable for representations made during the franchise sales process. This provision overrides any other conflicting terms in any document related to the franchise agreement.
This means that Cicis franchisees in these states retain the right to pursue claims against the franchisor based on statements made during the franchise sales process, even if they have signed documents that might appear to waive such claims. This is particularly relevant in cases of alleged fraud or misrepresentation, where the franchisee may have relied on information provided by Cicis when deciding to invest in the franchise. The FDD explicitly mentions that this protection extends to claims of fraud in the inducement, further reinforcing the franchisee's ability to seek legal recourse if they believe they were misled.
It is important for prospective Cicis franchisees to understand this provision, as it provides an additional layer of protection under state franchise laws. While the specific language applies to Illinois, Maryland, and Virginia, it reflects a broader trend in franchise law to protect franchisees from overreaching franchisors. Franchisees should consult with an attorney to fully understand their rights and obligations under the franchise agreement and applicable state laws. This ensures that franchisees are aware of their legal options and can make informed decisions throughout the franchise relationship.