If a prospective Cream franchisee is located in Illinois, is it permissible to sign the Representations Statement?

According to Cream's 2025 Franchise Disclosure Document, a prospective franchisee located in Illinois is explicitly instructed not to sign the Representations Statement. This restriction is also applicable to franchisees who are residents of Illinois or whose franchised business will be located in Illinois. The document emphasizes that this statement should not be signed if the franchisee is located in Illinois, Indiana, Maryland, Michigan, Minnesota, Virginia, or Wisconsin.

This instruction is put in place to protect the franchisee's rights under state franchise laws. The FDD includes addenda for Illinois, Indiana, Maryland, Michigan, Minnesota, Virginia, and Wisconsin that ensure no statement, questionnaire, or acknowledgment signed by the franchisee can waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor or its representatives. This provision takes precedence over any other conflicting terms in any document related to the franchise agreement.

For prospective Cream franchisees in Illinois, this means that while they are prohibited from signing the standard Representations Statement, their rights under the Illinois Franchise Disclosure Act remain protected. The state-specific addenda ensure that franchisees cannot inadvertently waive their legal rights or claims against the franchisor through standard documents signed during the commencement of the franchise relationship. This is a crucial safeguard, providing additional legal protection to franchisees in these specified states.