In Illinois, does any statement signed by a Stretch Zone franchisee in connection with the franchise relationship have the effect of waiving claims under state franchise law?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
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 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 91–99)
What This Means (2025 FDD)
According to the 2025 Stretch Zone Franchise Disclosure Document, for franchisees in Illinois, any statement, questionnaire, or acknowledgment signed or agreed to in connection with starting the franchise relationship will not waive claims under state franchise law. This includes claims related to fraud in the inducement or disclaiming reliance on statements made by Stretch Zone or anyone acting on their behalf. This specific provision overrides any other conflicting terms in any document signed as part of the franchise agreement.
This means that even if a franchisee signs a document that seems to waive their rights, that waiver is not legally effective under Illinois law. Franchisees retain their right to pursue claims under Illinois franchise law, ensuring they are not bound by clauses that could unfairly limit their legal recourse. This protection extends to claims of fraud, where a franchisee might argue they were misled into signing the agreement.
This addendum provides significant protection for Stretch Zone franchisees in Illinois, ensuring they cannot inadvertently waive their rights under state franchise laws through standard paperwork. Prospective franchisees should understand this provision as a safeguard, allowing them to address grievances or legal issues that may arise during the franchise relationship without fear of a pre-emptive waiver impacting their case.