Can a Cicis franchisee disclaim reliance on statements made by the franchisor?
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, whether a franchisee can disclaim reliance on statements made by Cicis depends on the state in which the franchise is located. Specifically, for franchises located in Illinois, Indiana, Maryland, or Virginia, the franchise agreement stipulates that no statement can disclaim reliance on any statement made by Cicis or its representatives. This provision is designed to protect franchisees in these states from unknowingly waiving their rights to claim they relied on information provided by the franchisor. This specific clause supersedes any other term in any document executed in connection with the franchise.
However, the FDD also includes an acknowledgment statement that prospective franchisees in states other than Illinois, Indiana, Maryland, or Virginia must sign. This statement requires franchisees to acknowledge that their decision to purchase the franchise is not influenced by any oral representations, assurances, warranties, guarantees, or promises made by Cicis or its representatives, including any franchise broker, regarding the likelihood of success of the franchise. This acknowledgment aims to ensure that franchisees understand the risks involved and are not relying on any information not explicitly stated in the Franchise Disclosure Document.
In practical terms, this means that if you are considering opening a Cicis franchise in Illinois, Indiana, Maryland, or Virginia, you cannot waive your right to claim reliance on statements made by Cicis. Conversely, if you are opening a franchise in a different state, you will likely be required to acknowledge that you are not relying on any oral representations or promises not included in the FDD. This difference highlights the importance of carefully reviewing all documents and seeking legal counsel to understand your rights and obligations based on the specific location of your franchise.