Can a person acquiring a Crisp & Green franchise waive requirements with any provisions of the Illinois Franchise Disclosure Act or any other law of the State of Illinois?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
This Illinois Addendum is only applicable if the developer is domiciled in Illinois or if the offer of the franchise is made or accepted in Illinois and the franchise business is or will be located in Illinois.
-
- Any condition, stipulation or provision purporting to bind any person acquiring a franchise to waive requirements with any provisions of the Illinois Franchise Disclosure Act or any other law of the State of Illinois is void. This shall not prevent any person from entering into a settlement agreement or executing a general release regarding a potential or actual lawsuit filed under the provisions of the Illinois Franchise Disclosure Act, nor shall it prevent the arbitration of any claims pursuant to the provisions of Title IX of the United States Code.
-
- 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 the 2024 Crisp & Green Franchise Disclosure Document, several provisions address the Illinois Franchise Disclosure Act and waivers. Specifically, any attempt to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void. This protection applies if the developer is domiciled in Illinois, or if the franchise offer is made or accepted in Illinois, and the franchise business is or will be located in Illinois. This ensures that franchisees operating in Illinois are not forced to surrender their legal rights under Illinois law.
Furthermore, no statement, questionnaire, or acknowledgment signed by a Crisp & Green franchisee can waive claims under any applicable state franchise law, including claims of fraud in the inducement, or disclaim reliance on statements made by Crisp & Green or its representatives. This provision is designed to protect franchisees from inadvertently giving up their legal rights during the initial stages of the franchise relationship. This protection supersedes any other conflicting terms in any document executed in connection with the franchise.
In addition, the FDD states that any provision in a franchise agreement that designates jurisdiction or venue in a forum outside of Illinois is void concerning any cause of action enforceable in Illinois. While the franchise agreement generally adheres to Minnesota law, the laws of Illinois will govern the construction and interpretation of the Franchise Agreement and Area Development Agreement, ensuring that Illinois franchisees have their disputes resolved under Illinois law. However, the agreement may still provide for arbitration outside of Illinois.