In which states does a franchisee's signed statement not disclaim reliance on statements made by Cream or its representatives?

According to Cream's 2025 Franchise Disclosure Document, franchisees in Illinois, Indiana, Maryland, Michigan, Minnesota, Virginia, and Wisconsin are protected by state laws that prevent them from signing statements disclaiming reliance on representations made by Cream or its representatives. This means that if a franchisee in these states signs a statement, questionnaire, or acknowledgment related to starting their franchise, that document cannot be used to argue that they did not rely on statements made by Cream during the franchise sales process. This protection also applies to claims of fraud in the inducement, meaning franchisees in these states retain the right to claim they were fraudulently convinced to invest in the franchise.

This provision is particularly important for prospective franchisees because it ensures that they cannot inadvertently waive their rights to pursue legal claims based on misrepresentations made by Cream. The FDD emphasizes that this provision supersedes any other term in any document executed in connection with the franchise, reinforcing the strength of this protection for franchisees in the specified states.

For franchisees outside of these listed states, it is crucial to carefully review any documents that require them to disclaim reliance on statements made by Cream. Such disclaimers could potentially limit their ability to bring legal action against the franchisor based on pre-contractual misrepresentations. Therefore, consulting with a legal professional before signing any franchise-related documents is advisable to fully understand the implications of these waivers and protect their legal rights.