Does the Rider to the Body20 Franchise Agreement prevent a person from entering into a settlement agreement regarding a lawsuit filed under the Illinois Franchise Disclosure Act?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
ement will be located in Illinois, and/or (b) you are domiciled in Illinois.
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- GOVERNING LAW. Section 16.1 of the Franchise Agreement is deleted and replaced with the following:
Except to the extent governed by the Federal Arbitration Act or other federal law, Illinois law governs this Agreement.
- CONSENT TO JURISDICTION. The following is added to the end of Section 16.3(d) of the Franchise Agreement:
Notwithstanding the foregoing, in conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in this Agreement that designates jurisdiction and venue in a forum outside of Illinois is void. However, this Agreement may provide for arbitration to take place outside of Illinois.
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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 Franchise Agreement for use in Illinois does not prevent a person from entering into a settlement agreement regarding a lawsuit filed under the Illinois Franchise Disclosure Act. Instead, the Rider specifically allows such settlement agreements.
Specifically, Section 16.10 is added to the Franchise Agreement to address the Illinois Franchise Disclosure Act. This section states that while any provision that attempts to waive compliance with the Illinois Franchise Disclosure Act is void, this does not prevent a 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.
This means that Body20 franchisees in Illinois retain the right to settle disputes arising under the Illinois Franchise Disclosure Act, and the franchise agreement cannot prevent them from doing so. This protection ensures that franchisees are not forced to waive their rights under the Act, while still allowing them to resolve disputes through settlement or arbitration.