If a Cicis franchisee is subject to franchise registration or disclosure laws in Illinois, Indiana, Maryland, or Virginia, can they 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 Cicis's 2025 Franchise Disclosure Document, franchisees in Illinois, Indiana, Maryland, or Virginia cannot waive claims under applicable state franchise law. Specifically, any statement, questionnaire, or acknowledgment signed by a franchisee cannot waive claims under state franchise law, including claims of fraud. This also means franchisees in these states cannot disclaim reliance on statements made by Cicis or anyone acting on their behalf. This provision overrides any other conflicting terms in any document related to the franchise agreement.
This protection ensures that franchisees in these states retain their legal rights and recourse, even if they have signed agreements that might suggest otherwise. It prevents Cicis from enforcing waivers that would undermine the protections afforded by state franchise laws. This is particularly important in states with franchise-specific regulations designed to protect franchisees from potential overreach by franchisors.
This clause provides a safeguard for franchisees, ensuring they are not pressured into relinquishing their rights through standard agreements. It allows franchisees to pursue legal remedies if they believe they have been misled or defrauded, reinforcing the importance of state franchise laws in regulating the franchisor-franchisee relationship. Prospective franchisees should be aware of this protection and consult with legal counsel to fully understand their rights under applicable state laws.