For a Buildingstars franchise located in Illinois, which state's law governs the Franchise Agreement?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT III STATE LAW ADDENDA
STATE LAW ADDENDA-ILLINOIS
Notwithstanding anything contained in the foregoing Franchise Agreement and Franchise Disclosure Document ("FDD") to the contrary, the following provisions of the Illinois Franchise Disclosure Act ("Act") shall apply to any franchise located in the State of Illinois, which shall control to the extent of any inconsistency:
Illinois law governs the Franchise Agreement.
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 voice. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, for any franchise located in Illinois, Illinois law governs the Franchise Agreement. This is outlined in the State Law Addenda for Illinois. This addendum takes precedence over any conflicting terms in the standard Franchise Agreement or Franchise Disclosure Document.
This means that if there are disputes regarding the Franchise Agreement for a Buildingstars franchise in Illinois, Illinois state law will be used to interpret the agreement and resolve the issues. This protects the franchisee by ensuring that the laws of their state, rather than a potentially less favorable jurisdiction, will apply.
Additionally, any provision in the Buildingstars franchise agreement that designates jurisdiction and venue in a forum outside of Illinois is void, although the agreement may provide for arbitration to take place outside of Illinois. This ensures Illinois franchisees are not forced to litigate disputes in distant or inconvenient locations.