What Illinois statute is referenced in the C3 Wellness Spa Franchise and Development Agreement Amendment?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
In recognition of the requirements of the Illinois Franchise Disclosure Act, 815 ILCS 705/1 to 705/45, and Ill. Admin. Code tit. 15, §200.100 et seq., the undersigned agree to the following modifications to the Aryes Franchising LLC Franchise Agreement (the "Franchise Agreement") and, if Franchisor and Franchisee both sign the Aryes Franchising LLC Multi-Unit Development Agreement (the "Development Agreement"), as follows:
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- Article 14.C of the Franchise Agreement, under the heading "Conditions for Approval of Transfer," the following language is added to the end of subarticle 14.C.(6):
- ; excluding only such claims as the transferor and its Owners may have under the Illinois Franchise Disclosure Act (815 ILCS 705/1 to 705/45).
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- Article 15.B. of the Franchise Agreement, under the heading "Conditions for Renewal," the following language is added to the end of subarticle 15.B.(8):
- ; excluding only such claims as the transferor and its Owners may have under the Illinois Franchise Disclosure Act (815 ILCS 705/1 to 705/45).
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- Article 18.F. of the Franchise Agreement, and if Franchisee executes a Development Agreement, Article 7.5 of the Development Agreement, under the heading "Governing Law", shall be amended by the addition of the following statement added after the end of the last sentence of Article 18.F. of the Franchise Agreement and Article 7.5 of the Development Agreement:
Illinois Addendum: 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 in a venue outside Illinois.
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.
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
According to the 2024 C3 Wellness Spa Franchise Disclosure Document, the Illinois Franchise and Development Agreement Amendment references the Illinois Franchise Disclosure Act, specifically 815 ILCS 705/1 to 705/45. It also references Ill. Admin. Code tit. 15, §200.100 et seq. This amendment acknowledges the requirements set forth in these legal provisions.
Several articles within the Franchise Agreement are modified to ensure compliance with the Illinois Franchise Disclosure Act. For instance, language is added to Article 14.C regarding transfer conditions and Article 15.B concerning renewal conditions. These additions exclude claims the transferor and its Owners may have under the Illinois Franchise Disclosure Act (815 ILCS 705/1 to 705/45).
Additionally, Article 18.F of the Franchise Agreement and Article 7.5 of the Development Agreement are amended to specify that Illinois law governs the agreements between the parties. The amendment also includes a statement clarifying that any provision designating jurisdiction or venue outside of Illinois is void, as per Section 4 of the Illinois Franchise Disclosure Act, while allowing for arbitration outside of Illinois. The amendment also states that the franchisee's rights upon termination and non-renewal are detailed in Sections 19 and 20 of the Illinois Franchise Disclosure Act.
For a prospective C3 Wellness Spa franchisee in Illinois, this means that the franchise agreement is specifically tailored to comply with Illinois law, providing certain protections and rights under the Illinois Franchise Disclosure Act. It is important for franchisees to understand these rights, particularly those related to transfer, renewal, termination, and dispute resolution, as they are governed by Illinois law.