If a Cream franchisee is subject to franchise laws in Illinois, Indiana, Maryland, Michigan, Minnesota, Virginia, or Wisconsin, what effect do signed statements have regarding claims under state franchise law?
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, franchisees operating in Illinois, Indiana, Maryland, Michigan, Minnesota, Virginia, or Wisconsin receive specific protections regarding signed statements. Any statement, questionnaire, or acknowledgment signed by a Cream franchisee at the start of their franchise relationship cannot waive claims under applicable state franchise laws. This includes claims related to fraud in the inducement.
Furthermore, these signed documents cannot disclaim reliance on statements made by Cream, its franchise sellers, or anyone acting on Cream's behalf. This means that even if a franchisee signs a document stating they did not rely on certain representations, that statement may not be enforceable under the franchise laws of these states. This provision is designed to protect franchisees from inadvertently giving up their legal rights through standard paperwork.
This protection supersedes any other conflicting terms in any document executed in connection with the Cream franchise. This ensures that the franchisee's rights under state franchise laws are upheld, regardless of what other agreements might state. Prospective Cream franchisees in these states should be aware of this provision, as it offers an additional layer of security against potential misrepresentations or overreaching by the franchisor.