How does the Illinois Addendum to the Software License Agreement for Bonchon franchises affect the franchisee's rights under the Illinois Franchise Disclosure Act?

According to Bonchon's 2025 Franchise Disclosure Document, the Illinois Addendum to the Software License Agreement is designed to protect the rights of franchisees under the Illinois Franchise Disclosure Act. Specifically, the addendum ensures that the standard provisions within the Software License Agreement regarding governing law, jurisdiction, and choice of law do not inadvertently waive any rights granted to the franchisee by the Illinois Franchise Disclosure Act. This means that Illinois franchisees retain all protections and rights afforded to them under Illinois law, regardless of what the standard Software License Agreement might otherwise imply.

In practical terms, this addendum directly addresses Sections 16.01 ("Governing Law") and 16.02 ("Venue") of the Software License Agreement. For Illinois franchisees, these sections are effectively deleted. This prevents Bonchon from enforcing provisions that might compel franchisees to resolve disputes under laws or in venues outside of Illinois, which could be less favorable to the franchisee. The addendum ensures that Illinois law takes precedence in protecting the franchisee's rights, maintaining the integrity of the Illinois Franchise Disclosure Act.

This type of addendum is a common practice in franchise agreements to comply with state-specific franchise laws, which often aim to protect franchisees from potentially overreaching standard contract terms. By explicitly stating that the Software License Agreement does not waive any rights under the Illinois Franchise Disclosure Act, Bonchon provides assurance to its Illinois franchisees that their legal rights within the state are fully preserved and enforceable.