Under what circumstances can a Bombs Away franchisee enter into a settlement agreement or execute a general release, according to the Illinois Rider?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
Notwithstanding any provision of the Agreement to the contrary, any condition, stipulation, or provision purporting to bind Franchisee to waive compliance with any provision of the Illinois Act or any other law of the State of Illinois is void. This Section shall not prevent Franchisee from entering into a settlement agreement or executing a general release regarding a potential or actual lawsuit filed under any of the provisions of this Act, nor shall it prevent the arbitration of any claim pursuant to the provisions of Title 9 of the United States Code.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, specifically the Illinois Rider to the Franchise Agreement, a franchisee is not prevented from entering into a settlement agreement or executing a general release under specific circumstances. This allowance applies specifically to potential or actual lawsuits filed under the provisions of the Illinois Franchise Disclosure Act.
This means that while the standard Bombs Away Franchise Agreement might contain clauses that appear to restrict a franchisee's ability to waive rights or claims, the Illinois Rider carves out an exception. An Illinois Bombs Away franchisee retains the right to settle disputes or provide a release if it involves a lawsuit related to the Illinois Franchise Disclosure Act.
This provision ensures that Bombs Away franchisees in Illinois are not unduly restricted from resolving legal disputes related to franchise law. It also affirms their right to arbitrate claims under Title 9 of the United States Code, offering an alternative dispute resolution method. This clause aims to protect the franchisee's rights under Illinois law while still allowing for resolution of disputes.