What law governs the Alloy franchise agreement?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
Illinois law governs the Franchise Agreement.
In conformance with Section 4 of the Illinois Franchise Disclosure Act, 815 ILCS 705/1-44 (West 2016), any provision in a franchise agreement that designates jurisdiction or venue outside the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
Your rights upon termination and non-renewal are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act.
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.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to the 2025 Alloy Franchise Disclosure Document, the specific laws governing the Alloy Franchise Agreement depend on the franchisee's location. For franchisees in Illinois, Illinois law governs the Franchise Agreement. The FDD also states that any provision designating jurisdiction or venue outside of Illinois is void, although arbitration may occur outside of the state. For franchisees in Minnesota, the addendum to the franchise agreement states that Minnesota law provides franchisees with certain termination and nonrenewal rights, specifically referencing Minn. Stat. Sec. 80C.14, Subd. 3, 4 and 5, which require 90 days' notice of termination (with 60 days to cure) and 180 days' notice for nonrenewal, except in certain cases.
For franchisees in California, the California Business and Professions Code Sections 20000 through 20043, known as the California Franchise Relations Act, provides rights concerning termination, transfer, or non-renewal of a franchise. If the area development agreement contains a provision inconsistent with this law, California law will take precedence. Additionally, the FDD notes that certain provisions in the franchise agreement, such as those relating to non-compete covenants, waivers of punitive damages, jury trial provisions, and binding arbitration, may not be enforceable under California law.
For all other locations, the Alloy Franchise Agreement will be construed and enforced according to its terms. However, franchisees should consult the relevant addendum for their state to understand any specific modifications or legal considerations applicable to their franchise agreement.