What exceptions does the Body20 Rider provide to the rule against waiving compliance with the Illinois Franchise Disclosure Act?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5. ILLINOIS FRANCHISE DISCLOSURE ACT. The following is added as Section 16.10 of the Franchise Agreement:
- 16.10 Illinois Franchise Disclosure Act. In conformance with Section 41 of the Illinois Franchise Disclosure Act, any condition, stipulation, or provision purporting to bind any person acquiring any franchise to waive compliance with any provision of the Act or any other law of Illinois is void. However, that Section shall not prevent any person from entering into a settlement agreement or executing a general release regarding a potential or actual lawsuit filed under any provision of the Act,
nor shall it prevent the arbitration of any claim pursuant to the provisions of Title 9 of the United States Code.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the Illinois Rider to the Franchise Agreement outlines specific exceptions to the general rule that prohibits franchisees from waiving compliance with the Illinois Franchise Disclosure Act (IFDA). Specifically, while any provision attempting to waive compliance with the IFDA is void, the rider clarifies that this does not prevent a Body20 franchisee from entering into a settlement agreement or executing a general release regarding a potential or actual lawsuit filed under any provision of the Act.
Furthermore, the Body20 rider states that the prohibition against waiving IFDA compliance does not prevent the arbitration of any claim pursuant to the provisions of Title 9 of the United States Code. This means that while franchisees cannot generally waive their rights under the IFDA, they can agree to settle disputes or participate in arbitration.
In essence, these exceptions provide Body20 franchisees with options to resolve disputes through means other than a full lawsuit, such as settlements or arbitration, without being seen as waiving their rights under the IFDA. This can be beneficial for both the franchisee and franchisor by offering more flexible and potentially less costly ways to address conflicts.