Which state's law governs the agreements between the parties in a Canopy Lawn Care franchise?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 section 19 and 20 of the Illinois Franchise Disclosure Act.
No statement, questionnaire, or acknowledgment 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 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 45–47)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, Illinois law governs the agreements between the parties to the franchise agreement. However, this is subject to certain stipulations outlined in the Illinois Franchise Disclosure Act.
Specifically, Section 4 of the Illinois Franchise Disclosure Act states that any provision in the franchise agreement that designates jurisdiction or venue outside of Illinois is void. This means that while Illinois law governs the agreement, Canopy Lawn Care cannot force a franchisee to litigate disputes outside of Illinois. The agreement can, however, stipulate arbitration outside of Illinois.
Additionally, Section 41 of the Illinois Franchise Disclosure Act prohibits any condition that would bind a franchisee to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law. The FDD also states that no statement signed by a franchisee can waive claims under state franchise law, including fraud, or disclaim reliance on statements made by Canopy Lawn Care. These provisions are designed to protect franchisees from unknowingly giving up their legal rights under Illinois law.