Can a Cicis franchisee waive claims under applicable state franchise law?
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. No delay, waiver, omission, or forbearance to exercise any right, option, duty, or power arising out of any breach or default by a party will constitute a waiver of the right to enforce any such right, option, duty, or power, or as to a subsequent breach or default. Acceptance by us of any payments after their due date will not be deemed a waiver of any preceding breach of your or your related parties' obligations however those obligations arise.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to the 2025 Cicis Franchise Disclosure Document, if a Cicis franchisee is subject to franchise registration or disclosure laws in Illinois, Indiana, Maryland, or Virginia, they cannot waive claims under applicable state franchise law. This includes claims related to fraud in the inducement or disclaiming reliance on statements made by the franchisor or its representatives. This provision takes precedence over any other term in any document executed in connection with the franchise agreement.
This means that franchisees in those specific states retain their legal rights and protections under state franchise laws, regardless of any agreements or statements they may sign during the commencement of the franchise relationship. This ensures that Cicis franchisees in these states cannot inadvertently or unknowingly give up their right to pursue legal claims against the franchisor if they believe they have been wronged.
It is important to note that this protection only applies to franchisees operating in Illinois, Indiana, Maryland, or Virginia. Franchisees in other states may be subject to different rules regarding waivers of claims. Cicis also states that no delay, waiver, omission, or forbearance to exercise any right will constitute a waiver of the right to enforce such right, and acceptance of payments after their due date will not be deemed a waiver of any preceding breach of obligations.