For Goldfish Swim School franchises in Illinois, what effect does any statement, questionnaire, or acknowledgement signed by a franchisee in connection with the commencement of the franchise relationship have on waiving claims under applicable state franchise law or disclaiming reliance on behalf of the Franchisor?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
No statement, questionnaire or acknowledgement signed or agreed to by a franchisee is connection with the commencement of the franchise relationship shall have the effect of: (i) waiving any claims under applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on behalf of the Franchisor. This provision supersedes any other term of Addendum and IN WITNESS WHEREOF, each of the undersigned hereby acknowledges having read this understands and consents to be bound by all of its terms. Goldfish Swim School Franchising LLC:
Source: Item 23 — RECEIPTS (FDD pages 77–389)
What This Means (2025 FDD)
According to the 2025 Goldfish Swim School Franchise Disclosure Document, a specific addendum addresses franchise agreements in Illinois. This addendum clarifies the enforceability of certain provisions within the franchise agreement, particularly concerning franchisee rights and waivers. It specifically states that no document signed by a franchisee in connection with starting the franchise can waive claims under Illinois franchise law, including claims of fraud, or disclaim reliance on the franchisor. This protects franchisees from inadvertently giving up their legal rights through standard paperwork at the beginning of the franchise relationship.
This provision is significant for prospective Goldfish Swim School franchisees in Illinois because it ensures that they retain their rights under Illinois franchise law, regardless of any standard documents they sign when commencing the franchise. This includes the right to bring claims against the franchisor for violations of the Illinois Franchise Disclosure Act, including claims of fraud or misrepresentation. The addendum also emphasizes that Illinois law governs the franchise agreement, and any disputes will be resolved in Illinois courts, further protecting the franchisee's legal standing.
In practical terms, this means that if a Goldfish Swim School franchisee in Illinois believes they were misled or defrauded by the franchisor during the franchise sales process, they can pursue legal action without being barred by a waiver or disclaimer signed at the outset. This protection is particularly important in franchising, where there can be a power imbalance between the franchisor and franchisee. The Illinois addendum aims to level the playing field and ensure that franchisees are not unfairly disadvantaged.
It is important for prospective franchisees to carefully review the entire franchise agreement and all addenda, including the Illinois-specific provisions, with legal counsel to fully understand their rights and obligations. While this addendum provides important protections, franchisees should still conduct thorough due diligence and seek professional advice before investing in a Goldfish Swim School franchise.