For a Camp Margaritaville franchise in Illinois, can a franchisee waive compliance with any provision of the Illinois Act?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
the Agreement:
The conditions under which this franchise can be terminated and the Parties' rights on termination may be affected by Illinois law, 815 ILCS 705/1-44.
- Entire Agreement. Section 19.10 of the Agreement is amended by adding the following:
Nothing contained in the Agreement waives any of the Franchisee's right to rely on the disclosure made by the Franchisor in its Franchise Disclosure Document or any corresponding rights the Franchisee has under the Illinois Act.
- Governing Law and Jurisdiction. Sections 17.05 and 19.06 of the Agreement are amended by adding the following:
All matters coming under the Illinois Act will be governed by the Illinois Act. The Parties irrevocably submit to the jurisdiction and venue of the federal and state courts in Illinois for all matters coming under the Illinois Act.
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- Waiver of Jury Trial. The last paragraph of Section 17.06 of the Agreement is deleted in its entirety.
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- Deferral of Application Fee. Section 6.01 of the Agreement is amended and restated in its entirety as follows:
Without limiting any other rights under this Agreement, Franchisee shall pay Franchisor a non-refundable application fee, due upon execution of this Agreement, in the amount of $500 per Overnight Accommodation; provided, however, that payment of the application fee will be deferred until Franchisor has met its pre-opening obligations to Franchisee, and Franchisee has commenced doing business.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, franchisees operating in Illinois cannot waive their rights under the Illinois Franchise Disclosure Act. The Illinois Addendum to the Franchise Disclosure Document explicitly states that any provision in the franchise agreement that attempts to waive compliance with any provision of the Illinois Act or any other Illinois law is considered void. This protection ensures that franchisees retain all rights granted to them by Illinois law.
This provision is reinforced by additional clauses within the Illinois Rider to the Camp Margaritaville Franchise Agreement. Specifically, it clarifies that nothing in the agreement waives the franchisee's right to rely on disclosures made in the Franchise Disclosure Document or any corresponding rights under the Illinois Act. Furthermore, any inconsistencies between the Franchise Agreement and Illinois law will be resolved in favor of Illinois law, meaning the terms of the applicable Illinois law will take precedence.
For a prospective Camp Margaritaville franchisee in Illinois, this means that the franchise agreement cannot force them to relinquish any protections or rights provided by Illinois franchise law. This includes the right to rely on the FDD, protection against unfair practices, and access to legal remedies within the state. This non-waiver provision provides a safeguard for franchisees, ensuring they are not bound by contractual terms that undermine their legal rights under Illinois law.
Moreover, the Illinois Addendum specifies that any provision designating jurisdiction and venue outside of Illinois is void, although arbitration may still take place outside of the state. The Act also prohibits choice of law provisions that would require the application of any laws except the laws of the state of Illinois. These stipulations further protect the franchisee by ensuring disputes are resolved under Illinois law and within Illinois courts, unless arbitration is agreed upon.