For Buildingstars franchises located in Illinois, which state's law governs the Franchise Agreement?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
STATE LAW ADDENDA-ILLINOIS
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.
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.
Source: Item 23 — RECEIPT (FDD pages 43–217)
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. The FDD includes a state law addendum specific to Illinois, which outlines how the Illinois Franchise Disclosure Act applies to the franchise agreement. This addendum takes precedence over any conflicting terms in the standard franchise agreement or the FDD itself.
This means that if a Buildingstars franchisee operates in Illinois, the interpretation and enforcement of the franchise agreement will be subject to Illinois state law. Certain provisions that might be valid in other states, such as those designating jurisdiction and venue outside of Illinois, are void under Illinois law. However, the agreement may allow for arbitration to occur outside of Illinois.
Furthermore, the Illinois Franchise Disclosure Act protects franchisees by preventing them from waiving compliance with Illinois laws or disclaiming reliance on statements made by Buildingstars during the franchise relationship. This ensures that Illinois franchisees have the full protection of their state's franchise laws, regardless of any conflicting terms in the franchise agreement.