Under what circumstances is the 'Governing Law/Consent to Jurisdiction' provision void for Aw franchises in Illinois?
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 'Governing Law/Consent to Jurisdiction' provision within the franchise agreement is void under specific circumstances for franchises operating in Illinois. Specifically, this provision is void with respect to any cause of action that is otherwise enforceable in Illinois, as per Section 4 of the Illinois Franchise Disclosure Act. This means that if a franchisee has a legal claim that can be pursued in Illinois courts under the state's franchise laws, the standard clause in the franchise agreement that might dictate a different jurisdiction or governing law will not apply.
This modification ensures that Aw franchisees in Illinois retain their rights under Illinois law to pursue legal claims within the state's jurisdiction. However, the FDD clarifies that 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 over the matter. This reinforces the franchisee's right to a local legal venue for disputes related to Illinois franchise law.
In essence, Aw acknowledges the Illinois Franchise Disclosure Act's provisions, preventing the franchisor from enforcing clauses that would force Illinois franchisees to litigate disputes outside of Illinois when those disputes are actionable under Illinois law. This addendum aims to protect the franchisee's rights and ensure fair legal recourse within the state.