What is an exception to the rule that waivers are void under the Illinois Act for Crave Cookies franchisees?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- **4.
Waivers Void.** Notwithstanding any provision of the Agreement to the contrary, any condition, stipulation, or provision purporting to bind Franchisee to waive compliance with any provision of the Illinois Act or any other law of the State of Illinois is void.
This Section shall not prevent Franchisee from entering into a settlement agreement or executing a general release regarding a potential or actual lawsuit filed under any of the provisions of this Act, nor shall it prevent the litigation of any claim pursuant to the provisions of Title 9 of the United States Code.
Source: Item 23 — RECEIPTS (FDD pages 47–194)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, while the Illinois Franchise Disclosure Act generally voids any attempt to have a franchisee waive compliance with the Act, there are exceptions. Specifically, a Crave Cookies franchisee is not prevented from entering into a settlement agreement or executing a general release regarding a potential or actual lawsuit filed under the provisions of the Act. Additionally, the Illinois Act does not prevent the litigation of any claim pursuant to the provisions of Title 9 of the United States Code.
In simpler terms, while Crave Cookies cannot force a franchisee to waive their rights under Illinois franchise law in the initial agreement, a franchisee can voluntarily settle a dispute or release claims related to a lawsuit under the Illinois Act. This allows for flexibility in resolving conflicts after they arise.
This exception is important because it allows Crave Cookies franchisees to resolve disputes through negotiation and settlement, which can be a more efficient and cost-effective alternative to litigation. It also acknowledges the franchisee's right to pursue claims under federal law, specifically Title 9 of the United States Code, which deals with arbitration.