Can a Cinnaholic franchisee waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
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- In conformance with section 41 of the Illinois Franchise Disclosure Act, any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
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- No statement, questionnaire or acknowledgement 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 behalf of the Franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 42–50)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, specifically the addendum to the Market Development Agreement for Illinois, any attempt to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void. This protection is in place to ensure that franchisees are not pressured into relinquishing their legal rights under Illinois law. This provision is in accordance with Section 41 of the Illinois Franchise Disclosure Act.
This means that Cinnaholic franchisees in Illinois cannot be bound by any agreement that forces them to waive their rights under Illinois law. This includes the Illinois Franchise Disclosure Act, which provides certain protections to franchisees, such as requiring franchisors to provide full and accurate information about the franchise opportunity. The addendum also states that no statement, questionnaire, or acknowledgement signed by a franchisee can waive claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on the franchisor.
This protection is significant for prospective Cinnaholic franchisees in Illinois because it ensures they retain all rights and remedies available to them under Illinois law, regardless of any agreement they may sign. This helps to level the playing field between the franchisor and franchisee and provides franchisees with recourse if they believe they have been treated unfairly or have been misled. This provision supersedes any other term of any document executed in connection with the franchise.