Is a provision in the Focus Cfo Franchise Agreement requiring a waiver of compliance with the Illinois Franchise Disclosure Act enforceable?

According to the 2025 Focus Cfo Franchise Disclosure Document, any statement, questionnaire, or acknowledgment signed by a franchisee cannot waive claims under applicable state laws, including fraud in the inducement. This provision specifically supersedes any other term in any document related to the Focus Cfo franchise. This means that Focus Cfo franchisees in any state, including Illinois, cannot waive their rights under state franchise laws through any signed document related to the franchise agreement.

This protection ensures that Focus Cfo franchisees retain their legal rights and remedies under state franchise laws, regardless of any conflicting provisions in the franchise agreement or related documents. This is particularly important in states like Illinois that have franchise disclosure laws designed to protect franchisees from unfair practices or misrepresentations by the franchisor. The clause aims to prevent Focus Cfo from using waivers to shield itself from liability for violating state franchise laws.

For a prospective Focus Cfo franchisee, this means that any attempt by Focus Cfo to include a waiver of state franchise law claims in any document is unenforceable. Franchisees retain the right to pursue claims under state franchise laws, including claims of fraud, misrepresentation, or violation of disclosure requirements. This provides an added layer of protection for franchisees and ensures that they can seek legal recourse if they believe their rights have been violated. This clause is especially relevant during the initial stages of the franchise relationship, where franchisees might be asked to sign various documents and acknowledgments.

However, the FDD does not explicitly address the enforceability of a waiver of compliance with the Illinois Franchise Disclosure Act. The FDD states that no statement, questionnaire, or acknowledgment signed by the franchisee can waive claims under any applicable state law, including fraud in the inducement. While this suggests that waivers are generally unenforceable, the document does not specifically mention the Illinois Franchise Disclosure Act or provide specific guidance on its enforceability. A prospective franchisee should seek clarification from Focus CFO regarding the enforceability of such a waiver under Illinois law.