For Auntie Annes franchisees under the jurisdiction of the Illinois Franchise Disclosure Act, is any provision in the Franchise Agreement that designates jurisdiction and venue in a forum outside of Illinois considered valid?
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 Annes's 2024 Franchise Disclosure Document, for franchisees operating under the jurisdiction of the Illinois Franchise Disclosure Act, any part of the Franchise Agreement that stipulates jurisdiction and venue in a location outside of Illinois is considered void. This stipulation applies specifically to any legal action that is otherwise enforceable within Illinois. This means that Illinois franchisees will have legal recourse in their home state.
This protection ensures that Auntie Annes franchisees in Illinois are not forced to litigate disputes in a potentially distant or inconvenient forum. It also means Illinois law will govern the Franchise Agreement with respect to franchisees under the jurisdiction of the Illinois Franchise Disclosure Act. This levels the playing field, allowing franchisees to resolve disputes within a legal system familiar to them.
Furthermore, the FDD states that any condition, stipulation, or provision that requires a person acquiring a franchise to waive compliance with any provision of the Illinois Franchise Disclosure Act or any other law of the state is void. Additionally, Section 21.1, titled "Your Acknowledgements," is deleted from all Illinois Franchise Agreements, reinforcing the protection of franchisee rights under Illinois law.