What law governs the franchise agreements between parties in Illinois for Better Blend?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
In recognition of the requirements of the Illinois Franchise Disclosure Act of 1987, as amended (the "Act"), this Disclosure Document is amended as follows:
Illinois law governs the agreements between the parties to this franchise.
Section 4 of the Act provides that any provision in a franchise agreement that designates jurisdiction or venue outside the State of Illinois is void. However, a franchise agreement may provide for arbitration outside of Illinois.
Section 41 of the Act provides that any condition, stipulation, or provision purporting to bind any person acquiring any franchise to waive compliance with the Act or any other law of Illinois is void.
Your rights upon termination and non-renewal of a franchise agreement are set forth in sections 19 and 20 of the Act.
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 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.
Source: Item 23 — RECEIPTS (FDD pages 43–157)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the Illinois Franchise Disclosure Act of 1987, as amended, governs the franchise agreements between parties in Illinois. This is explicitly stated in the Illinois Addendum to the Disclosure Document.
The FDD specifies that any provision in a Better Blend franchise agreement designating jurisdiction or venue outside of Illinois is void, although the agreement may allow for arbitration outside of Illinois. Additionally, any condition, stipulation, or provision that requires a franchisee to waive compliance with the Act or any other Illinois law is also void.
The Illinois Addendum also states that no statement, questionnaire, or acknowledgement signed by a franchisee can waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Better Blend or its representatives. This provision supersedes any other conflicting terms in any document related to the franchise agreement, providing additional protection to franchisees in Illinois.