Regarding the Bonchon franchise in Illinois, can a franchisee waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
ILLINOIS ADDENDUM TO FRANCHISE AGREEMENT
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- Illinois law governs the Franchise Agreement(s).
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- In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
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- Your rights upon Termination and Non-Renewal are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act.
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- 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 the Illinois Franchise Disclosure Act or any other law of Illinois is void.
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- No statement, questionnaire, or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
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- This Addendum may be executed in counterparts, which together shall constitute one and the same instrument. Signatures via DocuSign, .PDF file, facsimile, or other electronic format have the same force and effect as originals.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, franchisees in Illinois cannot waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law. The Illinois Addendum to the Franchise Agreement explicitly states that any condition, stipulation, or provision that attempts to bind a person acquiring a Bonchon franchise to waive compliance with these laws is void. This protection extends to statements, questionnaires, or acknowledgments signed by the franchisee in connection with starting the franchise relationship, ensuring they cannot waive claims under state franchise law, including claims related to fraud.
This provision is designed to protect franchisees from unknowingly relinquishing their legal rights. It ensures that Bonchon franchisees operating in Illinois are entitled to the full protections afforded by Illinois law, regardless of any conflicting terms in the franchise agreement. This addendum aims to create a fair balance between the franchisor and franchisee, preventing Bonchon from imposing terms that undermine the franchisee's legal standing within the state.
Furthermore, the Illinois Addendum also clarifies that any provision designating jurisdiction and venue outside of Illinois is void, although arbitration may occur outside the state. This ensures that legal disputes are generally resolved within Illinois, providing a more accessible and familiar legal environment for franchisees. The addendum also affirms that franchisees' rights upon termination and non-renewal are those outlined in sections 19 and 20 of the Illinois Franchise Disclosure Act, reinforcing the franchisee's protections under Illinois law.