According to the Body20 Rider, what section is added to the Development Agreement?

According to the 2025 Body20 Franchise Disclosure Document, the Rider to the Development Agreement for use in Illinois adds a specific section to the agreement. Specifically, Section 14, titled "Illinois Franchise Disclosure Act," is added to the Development Agreement. This section states that any condition, stipulation, or provision that attempts to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void.

However, this section does not prevent parties from entering into settlement agreements or executing general releases regarding potential or actual lawsuits filed under the Act. It also does not prevent the arbitration of any claim pursuant to the provisions of Title 9 of the United States Code.

In practical terms, this means that Body20 franchisees in Illinois cannot waive their rights under the Illinois Franchise Disclosure Act. This provision aims to protect franchisees by ensuring they are not forced to relinquish their legal protections under Illinois law. However, franchisees still retain the ability to settle disputes or engage in arbitration, providing flexibility in resolving conflicts.

This type of state-specific rider is common in franchise agreements to ensure compliance with local laws and regulations, particularly in states with robust franchise protection laws like Illinois. Prospective Body20 franchisees should carefully review these riders to understand their rights and obligations within their specific state.