For Auntie Annes franchisees in Illinois, what law governs the Franchise Agreement?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
In recognition of the requirements of the Illinois Franchise Disclosure Act of 1987, Ill. Comp. Stat. §§ 705/1 through 705/44, the Franchise Agreement, for franchises offered and sold in the State of Illinois or to Illinois residents, is amended to include the following:
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- The provisions of the Franchise Agreement on governing law, jurisdiction, and choice of law will not be a waiver of any right conferred on you by the Illinois Franchise Disclosure Act. Illinois law will govern the Franchise Agreement with respect to Illinois franchisees. Consistent with the foregoing, any provision in the Franchise Agreement that designates jurisdiction and venue in a forum outside of Illinois is void with respect to any cause of action that is otherwise enforceable in Illinois.
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- 815 ILCS § 705/41 (Illinois Franchise Disclosure Act) states that "any condition, stipulation, or provision purporting to bind any person acquiring any franchise to waive compliance with any provision of this Act or any other law of this State is void."
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- Section 21.1 (Your Acknowledgements) is deleted from all Illinois Franchise Agreements.
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to Auntie Anne's 2024 Franchise Disclosure Document, for franchises offered and sold in Illinois or to Illinois residents, Illinois law governs the Franchise Agreement. Specifically, the Illinois Franchise Disclosure Act will govern the agreement with respect to Illinois franchisees. This means that the terms and conditions of the franchise agreement will be interpreted and enforced in accordance with Illinois law.
This also means that any provision in the Franchise Agreement that designates jurisdiction and venue in a forum outside of Illinois is void with respect to any cause of action that is otherwise enforceable in Illinois. This protects Illinois franchisees from having to travel to another state to resolve disputes with Auntie Annes. Additionally, any attempt to waive compliance with the Illinois Franchise Disclosure Act or any other law of the state is void, ensuring franchisees retain their legal rights and protections under Illinois law.
Section 21.1 (Your Acknowledgements) is deleted from all Illinois Franchise Agreements. This deletion likely removes a clause that could have been interpreted as a waiver of rights or an acknowledgement of certain conditions that might be unfavorable to the franchisee. By removing this section, Auntie Annes ensures that franchisees are not inadvertently relinquishing their rights or agreeing to terms that are not fully understood or in their best interest under Illinois law.