Under Illinois law, can a Bonchon franchisee waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
ILLINOIS ADDENDUM TO FRANCHISE AGREEMENT
-
- Illinois law governs the Franchise Agreement(s).
-
- 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.
-
- Your rights upon Termination and Non-Renewal are set forth in sections 19 and 20 of the 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 the Illinois Franchise Disclosure Act or any other law of Illinois is void.
-
- 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.
-
- 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, Illinois law protects franchisees from waiving their rights under the Illinois Franchise Disclosure Act or any other Illinois law. Specifically, any provision in the franchise agreement that attempts to bind a franchisee to waive compliance with these laws is considered void. This protection is explicitly stated in an addendum to the franchise agreement for Illinois franchisees. This ensures that Bonchon franchisees operating in Illinois retain all the rights and protections afforded to them under Illinois law, regardless of any conflicting language in the standard franchise agreement.
Furthermore, any statement, questionnaire, or acknowledgement signed by a Bonchon franchisee in Illinois cannot waive claims under applicable state franchise law, including claims related to fraud in the inducement. Additionally, franchisees cannot disclaim reliance on statements made by Bonchon or its representatives. This provision is designed to override any other terms in documents related to the franchise agreement, reinforcing the franchisee's legal standing.
This protection is crucial for prospective Bonchon franchisees in Illinois as it prevents the franchisor from enforcing waivers that could limit their legal recourse. It aligns with the intent of franchise laws, which are designed to balance the power dynamic between franchisors and franchisees, ensuring a fairer business relationship. Franchisees should carefully review the Illinois addendum to the franchise agreement to fully understand their rights and protections under Illinois law.