In Illinois, what is the effect of the governing law provision on the Better Blend Franchise Agreement?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
This Rider amends the Franchise Agreement [if applicable: and Multi-Unit Development Agreement] dated (the "Agreement"), between Better Blend Franchising, LLC, an Ohio ("BBF") and, a limited liability company ("Franchisee"). 1. Governing Law. Illinois law governs the Agreement. 2. lawsuit filed under any of the pursuant to the provisions of Title 9 of the United States Code. Waivers Void. In conformance with Section 41 of the Illinois Franchise Disclosure Act, notwithstanding any provision of the Agreement to the contrary, any condition, stipulation, or provision purporting to bind Franchisee to waive compliance with any provision of the Illinois Act or any other law of the State of Illinois is void. This Section shall not prevent Franchisee from entering into a settlement agreement or executing a general release regarding a potential or actual provisions of this Act, nor shall it prevent the arbitration of any claim 3. In conformance with Section 4 of the Illinois Franchise Disclosure Act, any Jurisdiction. provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the outside of Illinois. State of Illinois is void. However, a franchise agreement may provide for arbitration to occur 4. Franchisee's rights upon Termination and Non-Renewal are Termination/Non-Renewal. set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act. 5. Disclaimers. of: (i) waiving any claims under any applicable state franchise law, including fraud document executed in connection with the franchise. No statement, questionnaire or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect 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
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the Illinois Rider to the Franchise Agreement specifies that Illinois law governs the agreement. This means that the laws of Illinois will be used to interpret and enforce the franchise agreement between Better Blend Franchising, LLC and the franchisee, if the franchisee is in Illinois.
Furthermore, any provision in the franchise agreement that requires jurisdiction and venue in a forum outside of Illinois is void, although the agreement may still allow for arbitration to occur outside of Illinois. This protects Illinois franchisees from having to travel to other states for legal proceedings related to the franchise agreement, ensuring that disputes are resolved within the state's legal system.
Additionally, any condition, stipulation, or provision that attempts to waive the franchisee's compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void. However, this does not prevent the franchisee from entering into a settlement agreement or executing a general release regarding potential or actual violations of the Act, nor does it prevent arbitration of any claim. This provision ensures that franchisees cannot be forced to give up their rights under Illinois law, maintaining the protections afforded to them by the state.
Finally, the Illinois Rider specifies that no statement, questionnaire, or acknowledgement signed by a franchisee in connection with the commencement of the franchise relationship shall have the effect of waiving any claims under applicable state franchise law, including fraud in the inducement, or disclaiming reliance on any statement made by the franchisor. This provision supersedes any other term of any document executed in connection with the franchise, further safeguarding the franchisee's rights and ensuring transparency in the franchise relationship.