Under what circumstances do the additional disclosures for the Franchise Disclosure Document of ON SMILE LLC, as they pertain to Cicis franchises, apply to a franchisee?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
The following are additional disclosures for the Franchise Disclosure Document of ON SMILE LLC required by various state franchise laws. Each provision of these additional disclosures will only apply to you if the applicable state franchise registration and disclosure law applies to you.
FOR THE FOLLOWING STATES: CALIFORNIA, HAWAII, ILLINOIS, INDIANA, MARYLAND, MICHIGAN, MINNESOTA, NEW YORK, NORTH DAKOTA, RHODE ISLAND, SOUTH DAKOTA, VIRGINIA, OR WISCONSIN.
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 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 58–64)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the additional disclosures outlined in the document for ON SMILE LLC apply to a franchisee if the applicable state franchise registration and disclosure law applies to them. These additional disclosures are mandated by various state franchise laws.
For franchisees operating in specific states such as California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, or Wisconsin, certain provisions protect franchisees. Specifically, any statement or agreement signed by the franchisee cannot waive claims under state franchise law, including claims related to fraud in the inducement, or disclaim reliance on statements made by Cicis or its representatives. This ensures that franchisees in these states retain their legal rights and protections, superseding any conflicting terms in the franchise agreement.
In the case of Maryland, a rider to the Area Development Agreement is applicable if the franchisee is a resident of Maryland, the Cicis restaurants they develop will operate in Maryland, or the offer to sell or buy the franchise is made or accepted in Maryland. This rider includes provisions that protect franchisees' rights under the Maryland Franchise Registration and Disclosure Law, ensuring that releases required for assignment or transfer do not apply to claims arising under this law. Additionally, franchisees in Maryland have the right to bring actions in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, and the governing law for such claims will be Maryland law.