What Illinois statute governs the franchise disclosure requirements for Auntie Annes?
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 Disclosure Document for Auntie Anne's Franchisor SPV LLC for use in the State of Illinois is amended to include the following:
ITEM 17 RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION
- Notice Required By Law:
THE TERMS AND CONDITIONS UNDER WHICH WE MAY TERMINATE YOUR FRANCHISE AND YOUR RIGHTS ON NON-RENEWAL MAY BE AFFECTED BY ILLINOIS LAW, 815 ILCS §§ 705/19 AND 705/20.
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- The provisions of the Franchise Agreement, and all other agreements concerning governing law, jurisdiction, and choice-of-law, will not constitute a waiver of any right conferred on you by the Illinois Franchise Disclosure Act. Illinois law will govern the Franchise Agreement with respect to franchisees under the jurisdiction of the Illinois Franchise Disclosure Act. 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, the Illinois Franchise Disclosure Act of 1987, specifically Ill. Comp. Stat. §§ 705/1 through 705/44, governs the franchise disclosure requirements within the state of Illinois. This statute is referenced in the Illinois Addendum to the Disclosure Document, indicating that Auntie Annes must comply with these regulations when offering franchises in Illinois.
Several provisions within the Franchise Agreement are directly affected by Illinois law. The terms and conditions under which Auntie Annes may terminate a franchise, as well as a franchisee's rights upon non-renewal, are subject to Illinois law, specifically 815 ILCS §§ 705/19 and 705/20. Furthermore, the Franchise Agreement's clauses regarding governing law, jurisdiction, and choice-of-law cannot waive any rights conferred to the franchisee by the Illinois Franchise Disclosure Act.
Illinois law dictates that any provision in the Franchise Agreement designating jurisdiction and venue outside of Illinois is void with respect to any cause of action enforceable in Illinois. Additionally, 815 ILCS § 705/41 states that any condition requiring a franchisee to waive compliance with the Act or any other Illinois law is void. Section 21.1, concerning franchisee acknowledgments, is deleted from all Illinois Franchise Agreements to ensure compliance with these protections.
These stipulations ensure that Auntie Annes franchisees in Illinois are afforded the full protections of Illinois law, preventing the franchisor from circumventing these protections through contractual clauses. Prospective franchisees in Illinois should carefully review the Illinois Addendum to understand their rights and how Illinois law modifies the standard Franchise Agreement.