If a Cicis franchisee is subject to franchise registration or disclosure laws, what effect does that have on the 'No Waiver' provision?
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 Cicis's 2025 Franchise Disclosure Document, the 'No Waiver' provision is affected if a franchisee is subject to franchise registration or disclosure laws in Illinois, Indiana, Maryland, or Virginia. In these states, no statement, questionnaire, or acknowledgment signed by the franchisee can waive claims under applicable state franchise law, including claims of fraud. Additionally, franchisees in these states cannot disclaim reliance on statements made by Cicis, its franchise sellers, or anyone acting on Cicis's behalf.
This provision is designed to protect franchisees in states with specific franchise laws by ensuring they cannot inadvertently waive their legal rights or claims during the initial stages of the franchise relationship. This protection extends to claims of fraud and reliance on statements made by the franchisor.
This 'No Waiver' provision supersedes any conflicting terms in any document executed in connection with the franchise. Furthermore, any delay, waiver, omission, or forbearance by Cicis to exercise its rights does not constitute a waiver of those rights for future breaches or defaults by the franchisee. Acceptance of late payments by Cicis does not waive any prior breaches of the franchisee's obligations.
For a prospective Cicis franchisee, this means that if they are located in Illinois, Indiana, Maryland, or Virginia, they retain certain legal protections that cannot be waived through standard franchise agreements or related documents. This offers an additional layer of security and recourse in case of disputes or misrepresentations during the franchise sales process.