In which states does the 'No Waiver' provision apply to Cicis franchisees?
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 applies to franchisees located in Illinois, Indiana, Maryland, or Virginia. This provision ensures that franchisees in these states cannot waive certain rights granted to them under applicable state franchise laws. Specifically, franchisees cannot waive claims related to fraud in the inducement or disclaim reliance on statements made by the franchisor or its representatives.
This 'No Waiver' clause supersedes any other conflicting terms in any document associated with the franchise agreement. It also clarifies that any delay, waiver, omission, or failure to exercise a right by either party does not constitute a waiver of that right for future breaches or defaults. Furthermore, Cicis's acceptance of payments after their due date does not waive any prior breaches of the franchisee's obligations.
For a prospective Cicis franchisee, this provision offers additional protection in the states listed. It prevents the franchisee from inadvertently relinquishing their legal rights through signed documents or actions taken during the franchise relationship. This can be particularly important in resolving disputes or addressing issues of misrepresentation or fraud.