Which sections of the Aw franchise agreement are modified by the information provided in Item 22?
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. | |
| 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:
- 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, Item 22 outlines specific modifications to the franchise agreement, particularly concerning franchisees in Illinois. Section 18.4 regarding "Governing Law/Consent to Jurisdiction" is amended to ensure that the Illinois Franchise Disclosure Act applies to causes of action enforceable in Illinois. Furthermore, any claims arising under the Illinois Franchise Disclosure Act of 1987 must be brought in an Illinois court with the appropriate jurisdiction.
Specifically, Section 18.7 on "Limitations of Claims" is entirely replaced, ensuring it does not apply to claims under the Illinois Franchise Disclosure Act of 1987. Any condition that requires a franchisee to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is deemed void. The provisions in Section 3 concerning Renewal and Section 15 concerning Termination are also modified, with franchisee rights upon termination and non-renewal governed by Sections 19 and 20 of the Illinois Franchise Disclosure Act.
Additionally, Section 10.1 regarding the "Initial Franchise Fee" is amended to reflect that the initial franchise fees are deferred until Aw has fulfilled all initial obligations to the franchisee and the franchisee has commenced business operations. This deferral is mandated by the Illinois Attorney General due to Aw's financial condition. Finally, any statement that waives claims under state franchise law or disclaims reliance on franchisor statements is superseded, reinforcing franchisee protection.
These modifications primarily address legal and financial aspects of the Aw franchise agreement within Illinois, ensuring compliance with state laws and providing additional protections for franchisees operating in that state. Prospective franchisees should carefully review these modifications to understand their rights and obligations under the franchise agreement, particularly in relation to Illinois state law.