factual

In which states are franchisee waivers of claims under state franchise law ineffective for Cream franchises?

Cream Franchise · 2025 FDD

Answer from 2025 FDD Document

ment and related disclosures include evaluation of events up through and including June 9, 2025, which is the date the financial statement was available to be issued.

Note 3 - Member's Equity

The Company was formed through a contribution of equity from the Parent in the amount of $300,000.

EXHIBIT E STATE ADDENDA

ADDITIONAL DISCLOSURES FOR THE FRANCHISE DISCLOSURE DOCUMENT OF JENI'S SPLENDID ICE CREAMS FRANCHISE, LLC

The following are additional disclosures for the Disclosure Document of Jeni's Splendid Ice Creams Franchise, LLC required by various state franchise laws. Each provision of thes

Source: Item 23 — RECEIPTS (FDD pages 61–192)

What This Means (2025 FDD)

According to Cream's 2025 Franchise Disclosure Document, in certain states, franchisees cannot waive claims under state franchise law. Specifically, for franchisees subject to franchise registration or disclosure laws in Illinois, Indiana, Maryland, Michigan, Minnesota, Virginia, or Wisconsin, any statement, questionnaire, or acknowledgment signed in connection with the franchise's commencement will not waive claims under applicable state franchise law, including claims related to fraud in the inducement. This provision takes precedence over any conflicting terms in franchise documents.

This means that if a Cream franchisee in one of these states signs a document that appears to waive their rights to sue Cream for violations of state franchise law, that waiver will not be legally binding. This protection extends to claims of fraud, where the franchisee alleges they were misled into signing the agreement. The FDD also includes specific addenda for Maryland and Minnesota, further clarifying franchisees' rights under those states' laws.

For instance, Maryland franchise regulations state that requiring a franchisee to waive their right to file a lawsuit in Maryland for violations of the Maryland Franchise Registration and Disclosure Law is considered an unfair or deceptive practice. Similarly, Minnesota law prohibits Cream from requiring litigation to be conducted outside of Minnesota or requiring a waiver of a jury trial. These state-specific provisions enhance franchisee protections beyond the general waiver restrictions.

Prospective Cream franchisees should be aware of these state-specific protections, as they can significantly impact their legal rights and recourse in case of disputes with the franchisor. It is advisable to consult with a legal professional to fully understand the implications of these provisions and how they apply to their specific circumstances.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.