Does the Cream franchise agreement allow a franchisee in Illinois, Indiana, Maryland, Michigan, Minnesota, Virginia, or Wisconsin to disclaim reliance on statements made by the franchisor?

According to Cream's 2025 Franchise Disclosure Document, if a franchisee is subject to franchise laws in Illinois, Indiana, Maryland, Michigan, Minnesota, Virginia, or Wisconsin, no statement, questionnaire, or acknowledgment signed by the franchisee in connection with the commencement of the franchise relationship can waive any claims under applicable state franchise law, including fraud in the inducement. Furthermore, these documents cannot disclaim reliance on any statement made by Cream, franchise sellers, or anyone acting on Cream's behalf. This provision takes precedence over any other term in any document related to the franchise agreement. This protection is designed to ensure that franchisees in these states retain their legal rights and recourse against Cream, regardless of any agreements they may sign.

This means that Cream franchisees in these states cannot be forced to give up their right to sue Cream for violations of state franchise laws, including claims of fraud. It also prevents Cream from using signed documents to argue that the franchisee did not rely on statements made by Cream during the franchise sales process. This is a significant protection for franchisees, as it ensures they can hold Cream accountable for their representations and actions.

Many states have franchise laws in place to protect franchisees from unfair practices by franchisors. These laws often include provisions that prohibit franchisors from requiring franchisees to waive their legal rights. The inclusion of this clause in Cream's franchise agreement demonstrates their awareness of and compliance with these state laws. Prospective franchisees in these states should carefully review the franchise agreement and any related documents to ensure they understand their rights and obligations.