How does the Aw franchise agreement addendum modify the 'Governing Law/Consent to Jurisdiction' section for Illinois franchisees?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
| , 20, between Rayyan Pizza Franchise LLC, (Company) and | |
|---|---|
| (Franchisee) to amend said Franchise Agreement to | |
| include the following language: | |
| 1. Section 18.4. of the Franchise Agreement on "Governing Law/Consent to Jurisdiction" is amended | |
| by adding the following: | |
| This provision is void with respect to any cause of action which otherwise is enforceable in | |
| Illinois pursuant to Section 4 of the Illinois Franchise Disclosure Act. | |
| Notwithstanding the foregoing, claims arising under the Illinois Franchise Disclosure Act of | |
| 1987 shall be brought in any court in the state of Illinois with subject matter and personal | |
| jurisdiction in the particular matter. |
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the franchise agreement includes an addendum that specifically modifies the 'Governing Law/Consent to Jurisdiction' section for franchisees in Illinois. Section 18.4 of the franchise agreement is amended to state that the original provision is void with respect to any cause of action enforceable in Illinois under Section 4 of the Illinois Franchise Disclosure Act. Furthermore, any claims arising under the Illinois Franchise Disclosure Act of 1987 must be brought in a court within the state of Illinois that has the appropriate subject matter and personal jurisdiction.
This modification ensures that Illinois franchisees are protected by Illinois law and have the ability to pursue legal action within their own state for matters covered by the Illinois Franchise Disclosure Act. This is particularly important because it prevents Aw from forcing franchisees to litigate disputes in a different jurisdiction, which could be more costly and inconvenient for the franchisee. The Illinois Franchise Disclosure Act aims to protect franchisees by providing certain rights and remedies, and this addendum reinforces those protections.
In essence, this addendum levels the playing field for Illinois franchisees, ensuring that they are not disadvantaged by potentially onerous or unfair terms in the standard franchise agreement. It reflects a commitment to compliance with Illinois state law and provides a more accessible legal recourse for franchisees operating in Illinois. Prospective Aw franchisees in Illinois should carefully review this addendum to understand their rights and how disputes will be resolved.