Does the Cicis franchise agreement allow franchisees to disclaim reliance on statements made by the franchisor or its representatives?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
No statement, questionnaire or acknowledgement 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 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 franchisees to disclaim reliance on statements made by Cicis or its representatives, especially concerning state franchise laws. For franchisees in Illinois, Maryland, and Virginia, specific provisions are included to prevent such disclaimers. These provisions ensure that franchisees cannot waive claims under applicable state franchise laws, including claims related to fraud in the inducement, or disclaim reliance on statements made by Cicis or individuals acting on its behalf. These stipulations override any conflicting terms in documents associated with the franchise agreement. This protection is particularly relevant during the commencement of the franchise relationship.
For prospective Cicis franchisees, this means that any statements made by Cicis during the franchise sales process can be relied upon, and franchisees retain the right to pursue claims based on those statements, even if the franchise agreement contains language that might suggest otherwise. This is a significant safeguard, as it prevents Cicis from using contractual clauses to shield itself from liability for misrepresentations or misleading statements made to induce someone to invest in a franchise.
The inclusion of these protections reflects a commitment to fair franchising practices and compliance with state franchise laws, particularly in Illinois, Maryland, and Virginia. Franchisees in these states have additional assurance that their rights are protected and that they can hold Cicis accountable for the accuracy and truthfulness of the information provided during the franchise sales process. This also means that Cicis must ensure its representatives are well-informed and transparent in their dealings with potential franchisees to avoid potential legal issues.
It is important for prospective franchisees to carefully review these state-specific riders and understand their rights under the franchise agreement and applicable state laws. Consulting with a franchise attorney can help ensure a full understanding of these protections and how they apply to their specific situation.