factual

Which documents does the provision regarding waivers of claims under state franchise law supersede for Cream franchises?

Cream Franchise · 2025 FDD

Answer from 2025 FDD Document

The following provision applies if you or the franchise granted hereby are subject to the franchise registration or disclosure laws in 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 (1) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (2) 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.

Source: Item 23 — RECEIPTS (FDD pages 61–192)

What This Means (2025 FDD)

According to Cream's 2025 Franchise Disclosure Document, a specific provision addresses the waiver of claims under state franchise law for franchisees in Illinois, Indiana, Maryland, Michigan, Minnesota, Virginia, or Wisconsin. This provision ensures that no statement, questionnaire, or acknowledgment signed by a franchisee at the start of their franchise relationship can waive claims under applicable state franchise law, including claims related to fraud in the inducement. It also prevents franchisees from disclaiming reliance on statements made by Cream, its sellers, or representatives.

This protection is significant because it prevents Cream from using standardized documents to inadvertently or intentionally limit a franchisee's legal rights under state franchise laws. These laws are designed to protect franchisees, and this clause ensures those protections remain intact. The provision specifically applies to documents signed "in connection with the commencement of the franchise relationship," meaning it covers paperwork at the outset of the agreement.

For franchisees in the listed states, this clause offers additional security. It clarifies that any other term in any document executed in connection with the franchise is superseded by this provision. This means that if any other document contains language that could be interpreted as a waiver of rights or a disclaimer of reliance, this specific provision takes precedence, reinforcing the franchisee's protections under state law. This helps to ensure that franchisees in these states retain their rights to pursue claims under state franchise law, despite any potentially conflicting language in other documents.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.