What is the name of the Illinois law that this addendum to the Better Blend disclosure document recognizes?
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 addendum recognizes the requirements of the "Illinois Franchise Disclosure Act of 1987, as amended (the 'Act')." This means that Better Blend acknowledges and adheres to the specific regulations and provisions outlined in this Illinois law concerning franchise offerings.
Several key aspects of the Illinois Franchise Disclosure Act are highlighted in the addendum. It states that Illinois law governs the agreements between Better Blend and its franchisees in Illinois. Furthermore, the addendum points out that any provision in the franchise agreement that designates jurisdiction or venue outside of Illinois is void, although the agreement may allow for arbitration outside of the state. This protects franchisees from having to resolve disputes in distant or inconvenient locations.
The addendum also emphasizes that franchisees cannot waive compliance with the Act or any other Illinois law. Rights regarding termination and non-renewal are protected under sections 19 and 20 of the Act. Additionally, any statement or acknowledgment signed by a franchisee cannot waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Better Blend. This provision is designed to ensure that franchisees' rights are fully protected and that they cannot inadvertently relinquish those rights through contractual language.