What does the Rider to the Body20 Franchise Agreement say about waiving compliance with the Illinois Franchise Disclosure Act?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
HOWEVER, THIS SECTION SHALL NOT ACT AS A CONDITION, STIPULATION OR PROVISION PURPORTING TO BIND ANY PERSON ACQUIRING ANY FRANCHISE TO WAIVE COMPLIANCE WITH ANY PROVISION OF THE ILLINOIS FRANCHISE DISCLOSURE ACT AT SECTION 705/41 OR ILLINOIS REGULATIONS AT SECTION 200.609.
- 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 the 2025 Body20 Franchise Disclosure Document, the Rider to the Franchise Agreement for use in Illinois addresses compliance with the Illinois Franchise Disclosure Act. Specifically, it states that any condition, stipulation, or provision that attempts to bind someone acquiring a Body20 franchise to waive compliance with any provision of the Illinois Franchise Disclosure Act or any other Illinois law is considered void.
This protection ensures that Body20 franchisees in Illinois cannot be forced to give up their rights under Illinois franchise law. However, the Rider clarifies that 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 the Act. It also does not prevent the arbitration of any claim under Title 9 of the United States Code.
In summary, Body20 franchisees in Illinois retain their rights under the Illinois Franchise Disclosure Act, preventing them from being compelled to waive those rights. They are still able to settle disputes or engage in arbitration, but they cannot be forced to forfeit their legal protections under Illinois law.