Does the Illinois addendum for Crisp & Green allow franchisees to disclaim reliance on statements made by the franchisor or their representatives?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
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 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, the Illinois addendum does not allow franchisees to disclaim reliance on statements made by the franchisor or their representatives. Specifically, the addendum states that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor or their representatives. This provision takes precedence over any conflicting terms in other franchise documents. This protection applies to franchisees subject to state franchise registration/disclosure laws in several states, including Illinois.
This means that Crisp & Green franchisees in Illinois retain the right to pursue legal action based on misrepresentations or fraudulent statements made by the franchisor during the franchise sales process. The franchisor cannot enforce any agreement where the franchisee waives their right to rely on the franchisor's statements. This is a significant protection for franchisees, as it ensures they are not bound by disclaimers that could prevent them from seeking legal recourse if they were misled.
Illinois law governs the franchise agreement for Crisp & Green. Additionally, any condition that requires a franchisee to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is considered void. Franchisee rights upon termination and non-renewal of a franchise agreement are protected under Sections 19 and 20 of the Illinois Franchise Disclosure Act.