In the Creative World School agreement, what is the effect of a waiver of a breach on later breaches?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
reed 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 behalf of the Franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
-
- Governing Law. Section 20.7 of the Agreement is amended in its entirety to read as follows:
Illinois law governs the Franchise Agreement and all related agreements. .
5 Jurisdiction and Venue. Section 20.8 of the Agreement is amended by adding the following sentence:
In conformance with Section 4 of the Illinois Franchise Disclosure Act, any p provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
Based on the 2025 Creative World School Franchise Disclosure Document, the standard franchise agreement is modified by state-specific riders and addenda that address waivers. For franchisees in Illinois, any condition, stipulation, or provision in the agreement that attempts to waive compliance with any provision of the Illinois Act or any other Illinois law is void. This means that Creative World School cannot enforce any clause that would require a franchisee to waive their rights under Illinois law.
Similarly, for franchisees in Maryland, all representations requiring prospective franchisees to assent to a release, estoppel, or waiver of liability are not intended to, nor shall they act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. This ensures that Creative World School franchisees in Maryland retain their rights and protections under Maryland franchise law, regardless of any waivers they may have signed.
Furthermore, addenda applicable in New York, Maryland, and Virginia state that no statement, questionnaire, or acknowledgement signed by a franchisee in connection with starting the franchise can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on the franchisor. These provisions override any conflicting terms in the franchise agreement, reinforcing that Creative World School franchisees in these states cannot inadvertently waive their legal rights through standard documents at the beginning of their franchise relationship. These stipulations provide additional protection to franchisees by ensuring that their rights under state laws are preserved, despite any standard waivers or releases included in the franchise agreement.