In Illinois, can a person acquiring a Circle K franchise waive compliance with the Illinois Franchise Disclosure Act?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 41 of the Illinois Franchise Disclosure Act provides that 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.
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 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 this franchise.
The Acknowledgment Addendum attached to the Franchise Agreement is unenforceable under Illinois law because it may have the effect of forcing a franchisee to waive or release certain rights that you as a franchisee have under the Illinois Franchise Disclosure Act, 815 IL § 705.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, Illinois law protects franchisees from waiving their rights under the Illinois Franchise Disclosure Act. Specifically, Section 41 of the Act states that any provision that attempts to bind a person acquiring a franchise to waive compliance with the Act or any other Illinois law is void. This means that Circle K cannot include clauses in its franchise agreement that would force a franchisee to give up their legal protections under Illinois franchise law.
This protection extends to acknowledgments or questionnaires signed by the franchisee. No statement or acknowledgment can waive claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Circle K or its representatives. This ensures that franchisees can pursue legal remedies if they believe they have been misled or defrauded, regardless of any agreements they may have signed.
Furthermore, the Acknowledgment Addendum attached to the Franchise Agreement is unenforceable under Illinois law if it forces a franchisee to waive rights under the Illinois Franchise Disclosure Act. This provision reinforces the state's commitment to protecting franchisees and ensuring they are not pressured into relinquishing their legal rights. These stipulations are included in an addendum to the franchise agreement specifically for franchises sold in Illinois, highlighting the importance of adhering to Illinois statutes and regulations.