For Anago franchisees in Illinois, which state's laws govern the agreements between the parties, excluding the U.S. Federal Arbitration Act and other federal laws?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The "Summary" section of Item 17(w), entitled Choice of law, is deleted and replaced with the following:
Except for U.S. Federal Arbitration Act and other federal laws in the U.S., the laws of the state of Illinois apply.
Illinois law governs the agreements between the parties to this franchise.
Section 4 of the Illinois Franchise Disclosure Act provides that 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 in a venue outside of Illinois.
Section 41 of the Illinois Franchise Disclosure Act provides that 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.
You r rights upon termination and non-renewal of a Franchise Agreement are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, for franchisees in Illinois, the laws of Illinois govern the agreements between the parties. This excludes the U.S. Federal Arbitration Act and other federal laws. This means that Illinois state laws, including the Illinois Franchise Disclosure Act, will primarily dictate the legal terms and interpretation of the franchise agreement.
This is a significant point for prospective Anago franchisees in Illinois because it ensures that their rights and obligations are protected under Illinois law. The FDD specifically mentions that any provision in the franchise agreement designating jurisdiction or venue outside of Illinois is void, although arbitration may occur outside of Illinois. Furthermore, any attempt to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is also void.
Item 23 of the FDD also highlights that your rights upon termination and non-renewal of a Franchise Agreement are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act. This provides additional clarity and protection for franchisees operating within Illinois, ensuring they are subject to the state's legal framework designed to govern franchise relationships.