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Is the Acknowledgment Addendum attached to the Alloy Franchise Agreement enforceable under Illinois law?

Alloy Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. The Acknowledgment Addendum attached to the Franchise 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 Franchise Agreement is not enforceable in Illinois. Specifically, if the Acknowledgment Addendum states that it is not for use in the State of Illinois, it is unenforceable under Illinois law.

This unenforceability exists because the addendum may compel a franchisee to relinquish rights granted to them by the Illinois Franchise Disclosure Act, 815 IL § 705. This protection ensures that franchisees operating in Illinois are not inadvertently or intentionally made to waive their legal protections under Illinois franchise law.

This provision is designed to protect franchisees from unknowingly waiving their rights under Illinois law. Prospective Alloy franchisees in Illinois should be aware of this protection and consult with legal counsel to fully understand their rights and obligations under the Franchise Agreement and Illinois law.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.
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