Under Illinois law, is the Acknowledgment Addendum attached to the Alloy Area Development Agreement enforceable?
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 unenforceable in Illinois. This addendum, which states it is not for use in Illinois, may compel a franchisee to waive rights under the Illinois Franchise Disclosure Act, 815 IL § 705, which is against Illinois law.
This means that any attempt by Alloy to enforce the Acknowledgment Addendum in Illinois would likely be unsuccessful. Illinois law aims to protect franchisees from unknowingly relinquishing their legal rights. This protection ensures that franchisees can fully exercise their rights under the Illinois Franchise Disclosure Act without fear of being penalized or bound by unenforceable waivers.
Prospective Alloy franchisees in Illinois should be aware of this provision and understand that they cannot be forced to waive their rights under Illinois franchise law. This addendum provides an additional layer of protection for franchisees operating in Illinois, ensuring they are treated fairly and have recourse if their rights are violated. Franchisees should consult with a legal professional to fully understand their rights and obligations under the Illinois Franchise Disclosure Act.