What law governs the franchise agreements between Buff City Soap and its franchisees in the state of Illinois?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
FOR THE STATE OF ILLINOIS
Illinois law governs the agreements between the parties to this franchise. 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 outside of Illinois.
Item 5 is amended to state that payment of Initial Franchise/Development Fees will be deferred until Franchisor has met its initial obligations to franchisee, and franchisee has commenced doing business. This financial assurance requirements was imposed by the Office of the Illinois Attorney General due to Franchisor's financial condition.
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.
Your rights upon termination and non-renewal of a franchise agreement are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act.
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 behalf of the Franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 14 — Other Provisions. (FDD pages 204–210)
What This Means (2025 FDD)
According to Buff City Soap's 2025 Franchise Disclosure Document, Illinois law governs the franchise agreements between Buff City Soap and its franchisees in Illinois. The Illinois Franchise Disclosure Act specifies that any provision in a franchise agreement that designates jurisdiction or venue outside of Illinois is void. However, the agreement can stipulate arbitration outside of Illinois.
Furthermore, Section 41 of the Illinois Franchise Disclosure Act states that any condition, stipulation, or provision that requires a franchisee to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void. The FDD also clarifies that franchisees' rights upon termination and non-renewal of a franchise agreement are detailed in sections 19 and 20 of the Illinois Franchise Disclosure Act.
Finally, no statement, questionnaire, or acknowledgement signed by a franchisee related to the franchise relationship can waive claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on behalf of Buff City Soap. This provision takes precedence over any other term in any document executed in connection with the franchise.