Can a franchisee waive compliance with the Illinois Franchise Disclosure Act when acquiring a Southern Steer franchise?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
In conformance with section 41 of the Illinois Franchise Disclosure Act, any 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 acknowledgement 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.
"Nothing in this or in any related agreement, however, is intended to disclaim the representations we made in the franchise disclosure document that we furnished to you."
Source: Item 5 — and 7 of the FDD, Section 3.1 of the Franchise Agreement and Section 4.1 of the Multi-Unit Development Agreement are hereby amended to state that payment of the initial franchise fee and development fee will be deferred until We have satisfied Our pre-opening obligations, and You have commenced business operations. (FDD pages 168–290)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, franchisees acquiring a Southern Steer franchise in Illinois cannot waive compliance with the Illinois Franchise Disclosure Act. The FDD explicitly states that any condition, stipulation, or provision that attempts to bind a person acquiring a franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void. This protection is in place to ensure that franchisees are fully aware of their rights and protections under Illinois law.
This provision is further reinforced by amendments to the Franchise and Multi-Unit Development Agreements. Specifically, any statement, questionnaire, or acknowledgment signed by a franchisee cannot waive claims under applicable state franchise law, including claims of fraud in the inducement, or disclaim reliance on statements made by Southern Steer or its representatives. This ensures that franchisees cannot inadvertently or intentionally relinquish their legal rights through contractual language.
Moreover, the FDD clarifies that no part of any agreement related to the Southern Steer franchise is intended to disclaim the representations made in the franchise disclosure document itself. This means that Southern Steer cannot later argue that the franchisee was not entitled to rely on the information provided in the FDD. These stipulations collectively provide strong safeguards for franchisees in Illinois, ensuring they retain their rights and protections under state law throughout the franchise relationship.