Does this section apply if my Cream franchised business will be located in Virginia?
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, a specific provision applies if your franchise is subject to franchise laws in Virginia. This provision states that no statement, questionnaire, or acknowledgment signed by a franchisee at the start of the franchise relationship can waive claims under applicable state franchise law, including fraud in the inducement. It also prevents disclaiming reliance on statements made by Cream, franchise sellers, or others acting on Cream's behalf. This clause overrides any conflicting terms in the franchise documents. Therefore, if you are opening a Cream franchise in Virginia, this specific protection regarding waivers and disclaimers will apply to your franchise agreement. This ensures that franchisees in these states retain their rights under state franchise laws and are not bound by potentially disadvantageous waivers or disclaimers. This is a beneficial clause for franchisees as it protects their rights under state laws and ensures they can't unknowingly waive those rights.