In Illinois, does a franchisee's signed acknowledgement have the effect of waiving claims of fraud in the inducement against Ledgers?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
As to franchises governed by the Illinois Franchise Disclosure Act, if any of the terms of the Disclosure Document or Franchise Agreement are inconsistent with the terms below, the terms below control.
- D. In conformance with Section 41 of the Illinois Franchise Disclosure Act, any condition, stipulation, or provision of the Franchise Agreement purporting to bind you to waive compliance with any provision of the Illinois Franchise Disclosure Act or any other law of the State of Illinois is void.
- F. 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 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, for franchises governed by the Illinois Franchise Disclosure Act, a franchisee's signed acknowledgement will not waive claims of fraud in the inducement. This protection is explicitly stated within the Illinois addendum to the franchise agreement.
Specifically, the FDD indicates that any condition, stipulation, or provision in the Franchise Agreement that attempts to bind a franchisee to waive compliance with any provision of the Illinois Franchise Disclosure Act or any other law of the State of Illinois is considered void. This ensures that franchisees in Illinois retain their rights and protections under state law, regardless of any agreements they may sign.
This provision is significant for prospective Ledgers franchisees in Illinois as it safeguards their ability to pursue legal claims, including fraud in the inducement, even if they have signed acknowledgements or other documents that might suggest otherwise. This protection aligns with the Illinois Franchise Disclosure Act, which aims to protect franchisees from potentially unfair or overreaching terms in franchise agreements. This clause supersedes any other term of any document executed in connection with the franchise.