What is the registration status of the Alloy Franchise Disclosure Document in Illinois?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
The following states have franchise laws that require that the Franchise Disclosure Document be registered or filed with the states, or be exempt from registration: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin.
This Franchise Disclosure Document is registered, on file or exempt from registration in the following states having franchise registration and disclosure laws, with the following effective dates:
ILLINOIS ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT
The following applies to franchises and franchisees subject to Illinois statutes and regulations:
Item 5: Due to the financial condition of the Franchisor, the Illinois Attorney General's Office has required a financial assurance. Therefore, we have posted a surety bond which is on file with the Illinois Attorney General's Office. A copy of the surety bond is attached as an exhibit to the Illinois addenda pages.
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 Alloy's 2025 Franchise Disclosure Document, the document is registered, on file, or exempt from registration in Illinois, which has franchise laws requiring such actions. Due to Alloy's financial condition, the Illinois Attorney General's Office requires a financial assurance in the form of a surety bond, which is on file with their office, and a copy of the surety bond is attached as an exhibit to the Illinois addenda pages. Illinois law governs the Franchise Agreement.
Several provisions are included in the Illinois Addendum to protect franchisees. Specifically, any provision in a franchise agreement that designates jurisdiction or venue outside of Illinois is void, although the agreement may stipulate that arbitration can occur outside of Illinois. Additionally, any attempt to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void.
These stipulations ensure that Alloy franchisees operating in Illinois are afforded specific protections under Illinois law, particularly regarding legal proceedings and adherence to state regulations. Prospective franchisees should carefully review the Illinois Addendum and consult with legal counsel to fully understand their rights and obligations under Illinois franchise law.