If the franchise is subject to franchise registration or disclosure laws in Illinois, Indiana, Maryland, Michigan, Minnesota, Virginia, or Wisconsin, does the provision regarding waiver of claims supersede other terms in the franchise documents for Cream?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
The following provision applies if you or the franchise granted hereby are subject to the franchise 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 (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.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, if a franchisee is subject to franchise registration or disclosure laws in Illinois, Indiana, Maryland, Michigan, Minnesota, Virginia, or Wisconsin, a specific provision applies regarding waivers. This provision states that no statement, questionnaire, or acknowledgment signed by the franchisee at the start of the franchise relationship can waive claims under applicable state franchise law, including claims related to fraud in the inducement. Additionally, franchisees in these states cannot disclaim reliance on statements made by Cream, its franchise sellers, or representatives.
This clause is designed to protect franchisees in states with franchise laws by preventing them from inadvertently waiving their legal rights. It ensures that franchisees can pursue claims of fraud or misrepresentation, even if they have signed documents that might otherwise suggest a waiver. This protection is particularly important in the context of franchise agreements, which can be complex and may contain provisions that are not immediately clear to the franchisee.
For franchisees in the specified states, this provision offers a safeguard against overreaching by Cream. It clarifies that the franchisee's rights under state franchise laws are paramount and cannot be undermined by standard contractual language. This aspect could be a significant benefit for prospective franchisees, providing added assurance that they can enforce their rights if necessary. The FDD explicitly states that this provision supersedes any other conflicting terms in any document related to the franchise agreement, reinforcing its importance.
In summary, Cream's franchise agreement includes a provision that protects franchisees in Illinois, Indiana, Maryland, Michigan, Minnesota, Virginia, and Wisconsin from unintentionally waiving their rights under state franchise laws. This provision takes precedence over any other conflicting terms in the franchise documents, offering an additional layer of protection for franchisees in these states.