What state law governs the franchise agreements for Browns Chicken?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
This Addendum is to the Franchise Disclosure Document of Brown's Chicken, LLC ("Franchisor").
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- Illinois law governs the agreements between the parties to this franchise.
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- Section 4 of the Illinois Franchise Disclosure Act provides that any provision in a franchise agreement that designates jurisdiction or venue outside the State of Illinois is void. However, a franchise agreement may provide for arbitration in a venue outside of Illinois.
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- Section 41 of the Illinois Franchise Disclosure Act provides that 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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- Franchisee's rights upon termination and non-renewal of a franchise agreement are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act.
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- No statement, questionnaire, or acknowledgment 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
Source: Item 23 — RECEIPT (FDD pages 43–202)
What This Means (2025 FDD)
According to the 2025 Browns Chicken Franchise Disclosure Document, Illinois law governs the franchise agreements between Browns Chicken and its franchisees. This is explicitly stated in the State Addendum for Illinois. This means that the interpretation and enforcement of the franchise agreement will be subject to Illinois state laws.
For prospective franchisees, this is particularly relevant if they are considering opening a Browns Chicken franchise in Illinois. The addendum further clarifies specific provisions of the Illinois Franchise Disclosure Act that impact the franchise agreement. For example, any clause designating jurisdiction or venue outside of Illinois is void, although arbitration outside of Illinois is permitted. This ensures that legal disputes, unless arbitrated, will be resolved within the Illinois court system, potentially offering a more familiar legal environment for franchisees operating in Illinois.
Additionally, the addendum emphasizes that franchisees cannot waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law. This provision protects franchisees from unknowingly relinquishing their rights under state law. It also states that franchisees cannot disclaim reliance on statements made by Browns Chicken or its representatives, which could be important in cases of alleged misrepresentation. The rights of the franchisee upon termination and non-renewal of the franchise agreement are protected by sections 19 and 20 of the Illinois Franchise Disclosure Act.
It is important for prospective franchisees to carefully review the State Addendum and understand how Illinois law affects their rights and obligations under the franchise agreement. Consulting with a legal professional is advisable to fully grasp the implications of these provisions.