What is prohibited regarding acknowledgements signed by a Crab N Spice franchisee?
Crab_N_Spice Franchise · 2024 FDDAnswer from 2024 FDD Document
| 6. | | | Acknowledgements. No statement, questionnaire or acknowledgement signed or agreed | | to y a franchisee in connection with the commencement of the franchise relationship shall have the | | effect of: (i) waiving any claims under any app
Source: Item 22 — CONTRACTS (FDD pages 50–51)
What This Means (2024 FDD)
According to the 2024 Crab N Spice Franchise Disclosure Document, specifically for franchisees in Illinois, certain acknowledgements are prohibited to ensure compliance with the Illinois Franchise Disclosure Act.
Specifically, any statement, questionnaire, or acknowledgement signed by a Crab N Spice franchisee in connection with starting the franchise relationship cannot waive any claims under the Illinois Act or any other Illinois law. This means Crab N Spice cannot require franchisees to sign away their legal rights under Illinois state law when they begin their franchise.
However, this restriction does not prevent a Crab N Spice franchisee from entering into a settlement agreement or executing a general release regarding a potential or actual lawsuit filed under the Illinois Act. It also does not prevent the arbitration of any claim pursuant to the provisions of Title 9 of the United States Code. This ensures that while franchisees cannot be forced to waive their rights upfront, they can still resolve disputes through settlement, release, or arbitration later on.