In Illinois, does the prohibition against waiving compliance with the Illinois Act prevent arbitration of any claim for Better Blend franchisees?
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
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 addresses the issue of waiving compliance with the Illinois Franchise Disclosure Act. Specifically, it states that any condition, stipulation, or provision in the agreement that attempts to bind the franchisee to waive compliance with any provision of the Illinois Act or any other Illinois law is void. However, this does not prevent a franchisee from entering into a settlement agreement or executing a general release regarding a potential or actual lawsuit.
Importantly, the Illinois Rider explicitly states that the prohibition against waiving compliance with the Illinois Act does not prevent the arbitration of any claim filed under the provisions of the Act, or pursuant to Title 9 of the United States Code. This means that while Better Blend franchisees in Illinois cannot waive their rights under the Illinois Franchise Disclosure Act through a blanket provision in the franchise agreement, they are not prohibited from agreeing to arbitration to resolve specific disputes.
This clarification is significant for prospective Better Blend franchisees in Illinois, as it confirms that they retain their rights under the Illinois Franchise Disclosure Act while also allowing for the possibility of resolving disputes through arbitration. Franchisees should consult with legal counsel to fully understand their rights and obligations under the Illinois Franchise Disclosure Act and the Better Blend Franchise Agreement.