What law governs the Aplus Franchise Agreement in Illinois?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
Illinois law shall apply to and govern the Franchise Agreement and Development Agreement.
The conditions under which your franchise can be terminated and your rights on renewal may be affected by Illinois law, 815 ILCS 705/19 and 705/20.
No statement, questionnaire or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of: (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on behalf of the Franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, for franchisees operating in Illinois, the Franchise Agreement is governed by Illinois law. Specifically, the Illinois Attorney General's Office mandates that certain provisions within franchise documents be consistent with Illinois law, including the Illinois Franchise Disclosure Act of 1987, 815 ILCS 705/1-44.
This means that any part of the Aplus Franchise Agreement that clashes with Illinois law is automatically amended to comply with it. For example, the FDD specifies that any clause requiring a franchisee to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void. Similarly, any provision that designates jurisdiction and venue outside of Illinois is also void, although arbitration may occur outside the state.
Furthermore, the FDD states that franchisees' rights upon termination and non-renewal of the Franchise Agreement are protected by Sections 19 and 20 of the Illinois Franchise Disclosure Act. Additionally, any statement or acknowledgement signed by a franchisee cannot waive claims under Illinois franchise law, including claims of fraud, or disclaim reliance on the franchisor. This amendment ensures that Illinois franchisees receive the full protection of Illinois law, regardless of what the standard franchise agreement might otherwise state.
Aplus franchisees in Illinois should pay close attention to these state-specific amendments, as they modify the standard terms of the Franchise Agreement to provide additional legal safeguards. It is advisable for prospective franchisees to consult with an attorney to fully understand their rights and obligations under Illinois law.