What effect do statements, questionnaires, or acknowledgments signed by a Degree Wellness franchisee have on waiving claims under state franchise law in Illinois?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
In conformance with section 41 of the Illinois Franchise Disclosure Act, and condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise disclosure Act or any other law of Illinois is void.
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 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, Illinois franchise law protects franchisees from unintentionally waiving their rights. Specifically, any statement, questionnaire, or acknowledgment that a Degree Wellness franchisee signs in connection with starting their franchise business cannot be used to waive claims under Illinois franchise law. This protection extends to claims of fraud in the inducement, meaning a franchisee cannot waive their right to sue if they believe they were fraudulently persuaded to invest in the franchise.
This provision ensures that Degree Wellness franchisees in Illinois retain their legal rights and remedies under the Illinois Franchise Disclosure Act. It prevents the franchisor from using standardized documents to circumvent state law protections. This means that even if a franchisee signs a document that appears to waive certain rights, that waiver will not be enforceable in Illinois courts, safeguarding the franchisee's ability to pursue legal action if necessary.
Furthermore, the FDD states that this protection supersedes any other conflicting terms in any document related to the franchise agreement. This reinforces the priority of the non-waiver provision, ensuring that franchisees are not inadvertently relinquishing their rights through other clauses or agreements. Degree Wellness franchisees should still carefully review all documents and seek legal counsel to fully understand their rights and obligations, but this provision offers an additional layer of security under Illinois law.