What is the purpose of the Rayyan Pizza Franchise LLC Addendum to the Franchise Agreement for Aw franchises in Illinois?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
RAYYAN PIZZA FRANCHISE LLC ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT FOR THE STATE OF ILLINOIS
The Rayyan Pizza Franchise LLC Franchise Disclosure Document for use in the State of Illinois is modified in accordance with the following:
Illinois law shall apply to and govern the Franchise Agreement.
In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
Franchisee's rights upon Termination and Non-renewal are set forth in Sections 19 and 20 of the Illinois Franchise Disclosure Act.
In conformance with Section 41 of the Illinois Franchise Disclosure Act, any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
Payment of the Initial Franchise Fee will be deferred until Franchisor has met its initial obligations to franchisee, and franchisee has commenced doing business. This financial assurance requirement was imposed by the Office of the Illinois Attorney General due to Franchisor's financial condition.
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the Rayyan Pizza Franchise LLC Addendum to the Franchise Agreement for the State of Illinois modifies the standard franchise agreement to comply with Illinois law. The addendum addresses specific provisions of Illinois law that may supersede the standard agreement.
Specifically, the addendum ensures that Illinois law governs the Franchise Agreement for Aw franchises operating in Illinois. It also states that any provision designating jurisdiction and venue outside of Illinois is void, although arbitration may occur outside the state. The addendum also clarifies franchisee rights upon termination and non-renewal, referencing Sections 19 and 20 of the Illinois Franchise Disclosure Act.
Furthermore, the addendum ensures that franchisees cannot waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law. It also stipulates that payment of the initial franchise fee will be deferred until Aw has met its initial obligations and the franchisee has commenced business. This financial assurance requirement was imposed by the Office of the Illinois Attorney General due to Aw's financial condition. Finally, the addendum prevents any statement or acknowledgment from waiving claims under state franchise law or disclaiming reliance on statements made by Aw.