Besides the Craters & Freighters Franchise Agreement and FDD, are any other statements binding on the Franchisor?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
h a name that differs from that used by other franchisees or the franchisor. This change can be expensive and may reduce brand recognition of the products or services you offer.
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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.
DATED this day of, 20 CRATERS & FREIGHTERS FRANCHISE COMPANY
ILLINOIS
Illinois law governs the Franchise Agreement(s).
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.
Your rights upon Termination and Non-Renewal are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act.
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.
No statement, questionnaire, or acknowledgement signed or agreed to by you 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 us, any franchise seller, or any other person acting on behalf of us.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, certain statements, questionnaires, or acknowledgments signed by a franchisee cannot waive rights under state franchise laws. Specifically, in California and Virginia, no statement can waive claims related to franchise law, including fraud, or disclaim reliance on franchisor statements. This protection supersedes any conflicting terms in franchise documents.
In Illinois, the Franchise Agreement is governed by Illinois law. Any provision designating jurisdiction and venue outside of Illinois is void, although arbitration outside the state is permitted. Franchisees cannot waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law.
For prospective Craters & Freighters franchisees, these stipulations provide additional legal safeguards. Franchisees in California, Illinois, and Virginia are assured that certain rights and protections under state laws cannot be waived through standard franchise agreements or related documents. This ensures that franchisees can pursue legal claims, such as fraud, and rely on statements made by Craters & Freighters without contractual waivers undermining their position.