Does the Rider to the Body20 Franchise Agreement prevent the arbitration of any claim pursuant to the provisions of Title 9 of the United States Code?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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 the 2025 Body20 Franchise Disclosure Document, the Rider to the Body20 Franchise Agreement does not prevent the arbitration of any claim pursuant to the provisions of Title 9 of the United States Code. Specifically, for franchisees operating in Illinois, the Illinois Franchise Disclosure Act ensures that no provision can prevent the arbitration of claims under Title 9 of the U.S. Code. This means that Body20 franchisees in Illinois retain their right to pursue arbitration as defined by federal law. This protection is explicitly written into the franchise agreement to comply with Illinois state law.
This clause is included to comply with the Illinois Franchise Disclosure Act, which generally voids any provision that forces a franchisee to waive compliance with Illinois law. However, the Act specifically allows for settlement agreements, general releases, and the arbitration of claims under Title 9. Therefore, Body20 franchisees in Illinois are not restricted from arbitrating claims as per federal law.
For Body20 franchisees, this means that while the franchise agreement is governed by Illinois law, their right to arbitrate claims under the Federal Arbitration Act remains intact. This provides an additional layer of protection and ensures that franchisees are not forced to litigate disputes in a manner that is unfavorable to them. The inclusion of this clause demonstrates Body20's compliance with state regulations and its commitment to providing franchisees with fair and legal avenues for dispute resolution.