For Cinnaholic franchises, what is the effect of a franchisee signing a questionnaire regarding waiving claims under state franchise law?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
tions made by the franchisor or its personnel or agents.
- (c) Reliance by a franchisee on the franchise disclosure document, including any exhibit thereto.
- (d) Violations of any provision of this division.
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- Franchisor and Franchisee agree to be bound by the provisions of any limitation on the period of time in which claims must be brought under applicable law or this Agreement, whichever expires earlier.
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- 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. See NASAA STATEMENT OF POLICY REGARDING THE USE OF FRANCHISE QUESTIONNAIRES AND ACKNOWLEDGMENTS. https://www.nasaa.org/wp-content/uploads/2022/11/sop-franchisequestionnaires.pdf
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- To the extent this Addendum is inconsistent with any terms or conditions of the Agreement or the Exhibits or Schedules thereto, the terms of this Addendum shall govern.
, 20 Each of the undersigned hereby acknowledges having read, understood, and executed this Addendum on CINNAHOLIC FRANCHISING, LLC If an Individual: Print Name: Print Name: If other than an Individual: By: Name: Title:(Illinois)
The following Addendum modifies and supersedes the Cinnaholic Franchising, LLC Franchise Agreement (the "Agreement") with respect to CINNAHOLIC® franchises offered or sold to either a resident of the State of Illinois or a non-resident who will be operating a CINNAHOLIC® franchise in the State of Illinois pursuant to the Illinois Franchise Disclosure Act of 1987, Ill. Comp. Stat. §§ 705/1 through 705/44, as follows:
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- Illinois law governs the Franchise Agreement(s).
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- Payment of Initial Franchise/Development Fees will be deferred until Franchisor has met its initial obligations to franchisee, and franchisee has commenced doing business. This financial assurance requirement was imposed by the Office of the Illinois Attorney General due to Franchisor's financial condition3) In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However a franchise agreement may provide for arbitration to take place outside of Illinois.
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- Your rights upon Termination and Non-Renewal are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act.
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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 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, any questionnaire or acknowledgment signed by a franchisee at the start of their franchise relationship cannot waive claims under state franchise law, including claims of fraud. This means that even if a franchisee signs a document that appears to waive their rights, that waiver is not legally binding. This protection extends to disclaiming reliance on statements made by Cinnaholic or anyone acting on their behalf. This provision takes precedence over any conflicting terms in any document related to the franchise agreement.
For prospective Cinnaholic franchisees, this is a significant safeguard. It ensures that they retain their legal rights under state franchise laws, regardless of any statements they may sign during the initial stages of the franchise agreement. This protection is particularly important in cases where franchisees believe they were misled or provided with inaccurate information that influenced their decision to invest in the franchise.
Several state-specific addenda reinforce this protection. For example, addenda for Illinois, Virginia, and Washington explicitly state that no questionnaire or acknowledgment can waive claims under state franchise law or disclaim reliance on statements made by Cinnaholic. These addenda modify and supersede the standard franchise agreement to ensure compliance with local laws. Minnesota also has similar protections in place, prohibiting the franchisor from requiring waivers of franchisee's rights as provided for in Minnesota Statute 80C.
Cinnaholic also uses a Franchisee Disclosure Questionnaire to determine if unauthorized statements or promises were made to the franchisee. While franchisees must sign this questionnaire the same day they sign the Development Agreement and/or Franchise Agreement and pay their development and/or franchise fee, the questionnaire itself cannot be used to waive any legal claims. This comprehensive approach ensures that franchisees are protected by state franchise laws and can pursue legal remedies if necessary, despite any documentation signed at the commencement of the franchise relationship.