Are the additional disclosures in this section applicable to all Cream franchisees, or only those in specific states?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
The following are additional disclosures for the Disclosure Document of Jeni's Splendid Ice Creams Franchise, LLC required by various state franchise laws. Each provision of these additional disclosures will only apply to you if the applicable state franchise registration and disclosure law applies to you.
FOR THE FOLLOWING STATES: ILLINOIS, INDIANA, MARYLAND, MICHIGAN, MINNESOTA, VIRGINIA, OR WISCONSIN. 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.
ILLINOIS
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- Except for the U.S. Federal Arbitration Act and other federal laws in the U.S., the laws of the State of Illinois will govern the Franchise Agreement and the Area Development Agreement.
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- Section 4 of the Illinois Franchise Disclosure Act provides that any provision in a franchise agreement or Area Development Agreement that designates jurisdiction or venue outside the State of Illinois is void. However, a Franchise Agreement or Area Development Agreement may provide for arbitration outside of Illinois.
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- 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.
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- Your rights upon termination and non-renewal of a Franchise Agreement or Area Development Agreement are subject to sections 19 and 20 of the Illinois Franchise Disclosure Act.
MARYLAND
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the additional disclosures outlined in Exhibit E and Attachment F are not applicable to all franchisees. Instead, these disclosures are specific to franchisees operating in or connected to certain states.
Specifically, the document highlights that the state-specific terms will apply and modify the franchise agreement only if the franchise transaction satisfies the jurisdictional requirements for a particular state law and is not otherwise exempt from such law. The FDD mentions that the provisions of multiple states may apply, suggesting that a franchisee could be subject to the laws of more than one state depending on their circumstances.
For instance, there are specific provisions listed for franchisees in Illinois and Maryland. The Illinois provisions apply if the franchisee is domiciled in Illinois or if the franchise offer was made or accepted in Illinois and the franchised business will be operated there. Similarly, the Maryland provisions apply if the franchisee is a resident of Maryland, the franchised business is or will be operated in Maryland, or the franchise offer was made or accepted in Maryland. Additionally, there is a general provision that applies to franchisees subject to franchise laws in Illinois, Indiana, Maryland, Michigan, Minnesota, Virginia, or Wisconsin concerning the waiver of claims and reliance on franchisor statements.