Does the 'Limitations of Claims' provision apply to claims under the Illinois Franchise Disclosure Act of 1987 for Aw franchises?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
losure 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. | | 2. | Section 18.6. of the Franchise Agreement on "Waiver of Jury Trial" is amended by adding the |
This provision is void with respect to any cause of action arising under the Illinois Franchise Disclosure Act.
- Section 18.7. of the Franchise Agreement on "Limitations of Claims" is amended to read in its entirety as follows:
This provision shall not apply to any claims under the Illinois Franchise Disclosure Act of 1987.
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- Any condition, stipulation or provision in this Agreement or in the Franchisee Disclosure Questionnaire purporting to bind Franchisee to waive compliance with any provision of the Illinois Franchise Disclosure Act or any other law of the State of Illinois is void.
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- The provisions of the Section 3 of the Franchise Agreement on Renewal and Section 15 on Termination of the Franchise are modified by the following:
Franchisee's rights upon Termination and Non-renewal are set forth in Sections 19 and 20 of the Illinois Franchise Disclosure Act.
- Section 10.1 of the Franchise Fee on "Initial Franchise Fee" is amended by the addition of the following:
The Office of the Illinois Attorney General requires Company to defer all initial franchise fees until such time as the Company has completed all initial obligations owed to the Franchisee under the Franchise Agreement and the Franchisee has commenced doing business. This deferral of the initial franchise fee is required based on the Company's
following:
financial condition.
FRANCHISOR:
7.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to the 2025 Aw Franchise Disclosure Document, the 'Limitations of Claims' provision within the franchise agreement does not apply to claims made under the Illinois Franchise Disclosure Act of 1987. Specifically, Section 18.7 of the Franchise Agreement, which addresses 'Limitations of Claims,' is amended to explicitly state that it does not apply to claims under the Illinois Franchise Disclosure Act of 1987. This modification ensures that Aw franchisees in Illinois retain their rights and protections under Illinois law, regardless of any limitations clauses elsewhere in the agreement.
This provision is further reinforced by stipulations that any condition, stipulation, or provision in the agreement that attempts to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void. This ensures that Aw franchisees cannot be compelled to relinquish their legal rights under Illinois state law. Additionally, the FDD states that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Aw or its representatives.
For a prospective Aw franchisee in Illinois, this means that the franchise agreement is modified to comply with Illinois law, providing additional protection. The franchisee retains the right to pursue claims under the Illinois Franchise Disclosure Act without being hindered by limitations of claims provisions that might otherwise apply. This modification reflects a commitment to compliance with Illinois franchise law and protects the franchisee's ability to seek legal recourse if necessary.