Does the prohibition against waiving requirements under the Illinois Franchise Disclosure Act prevent a person from entering into a settlement agreement regarding a lawsuit filed under the provisions of the Illinois Franchise Disclosure Act related to a Crisp & Green franchise?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
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- 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.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, the prohibition against waiving requirements under the Illinois Franchise Disclosure Act does not prevent a person from entering into a settlement agreement regarding a lawsuit filed under the provisions of the Illinois Franchise Disclosure Act. This information is detailed in the Illinois Addendum within Item 23. This addendum applies if the franchisee is domiciled in Illinois, or if the franchise offer was made or accepted in Illinois, and the franchise business is or will be located in Illinois.
Specifically, the FDD states that while any condition that attempts to bind someone acquiring a Crisp & Green franchise to waive compliance with the Illinois Franchise Disclosure Act is void, this does not stop anyone from entering a settlement agreement. This also does not prevent the arbitration of any claims under Title IX of the United States Code.
For a potential Crisp & Green franchisee in Illinois, this means that while they cannot be forced to waive their rights under the Illinois Franchise Disclosure Act, they are still able to come to a settlement agreement with Crisp & Green should a dispute arise. This provides franchisees with the assurance that they retain the ability to resolve disputes through mutually agreed-upon settlements without being forced to surrender their legal protections under Illinois law.