Under Illinois law, can a person acquiring a Crave franchise waive compliance with the Illinois Franchise Disclosure Act?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
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, 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.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, a franchisee in Illinois cannot waive claims under applicable state franchise law. Specifically, any statement, questionnaire, or acknowledgment signed by a Crave franchisee in connection with starting the franchise cannot waive claims under state franchise law, including claims of fraud. This protection extends to reliance on statements made by Crave or anyone acting on their behalf.
This provision is designed to protect franchisees from unknowingly giving up their legal rights. It ensures that franchisees can pursue legal remedies if they believe they have been misled or harmed by Crave's actions. This safeguard is particularly important in the context of franchise agreements, which can be complex and may contain terms that are not immediately apparent to the franchisee.
The statement in the FDD explicitly overrides any other conflicting terms in any document executed in connection with the franchise. This means that even if a franchisee signs a document that appears to waive their rights, that waiver will not be enforceable under Illinois law. This protection helps to ensure a fair balance of power between the franchisor and the franchisee, preventing Crave from using its position to extract waivers of legal rights from franchisees.
Prospective Crave franchisees in Illinois should be aware of this protection and understand that they cannot be forced to waive their rights under state franchise law. This provision provides an added layer of security and recourse in case of disputes or issues arising from the franchise relationship.