In Illinois, can a Belocal franchisee waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
ILLINOIS ADDENDUM TO THE FRANCHISE DISCLOSURE DOCUMENT
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- Illinois law governs the Franchise Agreement.
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- 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.
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- Your rights upon Termination and Non-Renewal of a Franchise Agreement are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act.
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- 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.
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- 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.
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- By reading this disclosure document, you are not agreeing to, acknowledging, or making any representations whatsoever to the Franchisor and its affiliates.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, any attempt to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void. Specifically, the Illinois Addendum to the Franchise Disclosure Document states that any condition, stipulation, or provision that seeks to bind a person acquiring a Belocal franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is not enforceable. This protection is in place to ensure that franchisees are not pressured into giving up their legal rights under Illinois law.
This provision is reinforced by another clause in the Illinois Addendum, which clarifies that no statement, questionnaire, or acknowledgment signed by a Belocal franchisee can waive claims under any applicable state franchise law, including claims related to fraud in the inducement. This also prevents franchisees from disclaiming reliance on statements made by Belocal or its representatives. This clause supersedes any other conflicting terms in any document executed in connection with the franchise, further solidifying the protection for franchisees.
In practical terms, this means that a Belocal franchisee in Illinois cannot be forced to sign away their rights under Illinois franchise law. For example, Belocal cannot include a clause in the franchise agreement that requires the franchisee to waive their right to sue for violations of the Illinois Franchise Disclosure Act. This non-waiver provision is a standard protection in many state franchise laws, designed to protect franchisees from overreaching by franchisors. Prospective Belocal franchisees in Illinois should be aware of this protection and consult with an attorney to fully understand their rights under Illinois law.