Is the Acknowledgment Addendum attached to the Area Development Agreement for Alloy enforceable under Illinois law?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The Acknowledgment Addendum attached to the Area Development Agreement (and specifically stating that it is not for use in the State of Illinois) is unenforceable under Illinois law because it may have the effect of forcing a franchisee to waive or release certain rights that you as a franchisee have under the Illinois Franchise Disclosure Act, 815 IL § 705.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the Acknowledgment Addendum attached to the Area Development Agreement is generally unenforceable in Illinois. Specifically, the addendum is unenforceable if it states that it is not for use in the State of Illinois.
This unenforceability stems from the potential for the addendum to force a franchisee to waive rights granted under the Illinois Franchise Disclosure Act, 815 IL § 705. Illinois law aims to protect franchisees from unknowingly relinquishing their legal protections.
For a prospective Alloy franchisee in Illinois, this means that any acknowledgment addendum that could be interpreted as a waiver of rights under the Illinois Franchise Disclosure Act will not be legally binding. This protection ensures that franchisees retain their rights and remedies under Illinois law, regardless of any conflicting language in the Acknowledgment Addendum.