factual

Can a franchisee disclaim reliance on any statement made by the franchisor when starting a Cicis franchise in Illinois?

Cicis Franchise · 2025 FDD

Answer 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 Cicis's 2025 Franchise Disclosure Document, if you are starting a Cicis franchise in Illinois, you cannot disclaim reliance on statements made by Cicis. The FDD states that any statement, questionnaire, or acknowledgment signed by a franchisee in connection with starting the franchise cannot waive claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on any statement made by Cicis or anyone acting on their behalf. This rule overrides any other conflicting terms in any document related to the franchise agreement. This protection is explicitly provided under Illinois state law.

This means that even if a franchisee signs a document suggesting they did not rely on statements made by Cicis, that document will not prevent the franchisee from bringing a claim based on those statements. This is a significant protection for franchisees, as it ensures they can hold Cicis accountable for representations made during the franchise sales process. It prevents Cicis from using fine print or standardized forms to avoid liability for misrepresentations.

This provision is particularly important because it addresses potential power imbalances between the franchisor and franchisee. Franchisees often rely heavily on the information provided by the franchisor when making the decision to invest in a franchise. By preventing franchisees from disclaiming reliance, Illinois law aims to ensure that franchisors are truthful and transparent in their dealings with prospective franchisees. This protection aligns with the broader goals of franchise law, which seeks to protect franchisees from unfair or deceptive practices.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.