What state's laws govern the Alloy Franchise Agreement, and the relationship between the parties?
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.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the laws governing the Alloy Franchise Agreement and the relationship between the parties vary by state. For franchisees in Illinois, Illinois law governs the Franchise Agreement, subject to federal trademark laws and the Federal Arbitration Act. The FDD specifies that any provision designating jurisdiction or venue outside of Illinois is void, although arbitration may occur outside the state.
For franchisees in Minnesota, Section 16.I of the Franchise Agreement is modified to reflect that Minnesota law prohibits Alloy from requiring litigation to be conducted outside of Minnesota. To the extent the Franchise Agreement requires litigation outside of Minnesota, such provision is void.
For franchisees in Washington, in the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act will prevail. RCW 19.100.180, the Franchisee Bill of Rights, may supersede provisions in the franchise agreement concerning the franchisee's relationship with Alloy, including termination and renewal. In any arbitration or mediation involving a franchise purchased in Washington, the site will be in Washington or a mutually agreed-upon location. A franchisee may bring an action in Washington for issues arising from the sale of franchises or violations of the Washington Franchise Investment Protection Act.