What specific part of Section 18.4 of the Aw Franchise Agreement is amended?

According to Aw's 2025 Franchise Disclosure Document, Section 18.4 of the Franchise Agreement, which pertains to "Governing Law/Consent to Jurisdiction," is amended. The amendment adds a provision stating that the original section is void concerning 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 an Illinois court with the appropriate subject matter and personal jurisdiction.

In practical terms, this means that if an Aw franchisee in Illinois has a legal claim that falls under the Illinois Franchise Disclosure Act, they are protected by Illinois law, and the standard "Governing Law/Consent to Jurisdiction" clause in the franchise agreement does not override their right to pursue that claim in Illinois. This ensures that Illinois franchisees are not forced to litigate such claims in a different jurisdiction, which could be more costly and inconvenient.

This type of amendment is important for franchisees as it protects their rights under state-specific franchise laws. Franchise agreements often contain clauses that specify a particular state's law as governing and require disputes to be resolved in a specific jurisdiction, which may not always be favorable to the franchisee. This amendment ensures that Aw franchisees in Illinois have the benefit of their state's franchise laws and can pursue claims locally.