What Illinois statute governs the termination of a Caring Transitions franchise?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
ILLINOIS
The following additional disclosures are required by the Illinois Franchise Disclosure Act of 1987, as amended, and the Illinois Disclosure Rules and Regulations:
815 ILCS 705/41 provides that any condition, stipulation or provision in the franchise agreement that requires you to waive any of your rights under, or the franchisor's obligation to comply with any provision of, the Illinois Franchise Disclosure Act of 1987, as amended, the Illinois Disclosure Rules and Regulations, or any other law of Illinois, is void.
Nonrenewal of your franchise must comply with 815 ILCS 705/20. Termination of your franchise must comply with 815 ILCS 705/19.
Any provision in the franchise agreement that requires you to assert a claim within a specified period of time is void with respect to an action to enforce any liability created by the Illinois Franchise Disclosure Act.
Any provision in the franchise agreement that requires the application of the laws of another state is void with respect to a claim otherwise enforceable under the Illinois Franchise Disclosure Act.
Any provision in the franchise agreement that designates jurisdiction or venue in a forum outside the State of Illinois is void with respect to any cause of action which otherwise is enforceable under the Illinois Franchise Disclosure Act.
No statement, questionnaire, or acknowledgement signed or agreed to by you 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 us, any franchise seller, or any other person acting on our behalf. This provision supersedes any other term of any document executed in connection with the franchise.
ILLINOIS ADDENDUM TO FRANCHISE AGREEMENT
The Franchise Agreement to which this addendum is attached is amended as follows to comply with the Illinois Franchise Disclosure Act of 1987, as amended, and the Illinois Disclosure Rules and Regulations:
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, the termination of a Caring Transitions franchise in Illinois must comply with 815 ILCS 705/19. This statute is part of the Illinois Franchise Disclosure Act of 1987, as amended. The FDD emphasizes that any condition, stipulation, or provision in the franchise agreement that requires a franchisee to waive their rights or the franchisor's obligations under this Act, its rules, regulations, or any other Illinois law is void.
This means that Caring Transitions franchisees in Illinois are protected by Illinois law regarding franchise terminations, and they cannot waive these rights through any agreement. The Illinois Franchise Disclosure Act aims to protect franchisees from unfair practices by franchisors, ensuring a level playing field in the franchise relationship. This protection extends to the enforcement of liabilities created by the Act, meaning that any attempt to shorten the time to assert a claim under the Act is also void.
Furthermore, the FDD states that any provision in the franchise agreement that requires the application of laws from another state or designates a jurisdiction outside of Illinois is void with respect to claims enforceable under the Illinois Franchise Disclosure Act. This ensures that Illinois franchisees can resolve disputes under Illinois law and within the state's jurisdiction. Additionally, any general release required as a condition of renewal or assignment/transfer does not apply to claims or liabilities arising under the Illinois Franchise Disclosure Act.
Caring Transitions includes an Illinois addendum to the franchise agreement to ensure compliance with the Illinois Franchise Disclosure Act and its regulations. This addendum amends the franchise agreement to reflect the specific protections afforded to franchisees under Illinois law. This addendum further reinforces that no statement, questionnaire, or acknowledgment signed by the franchisee can waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Caring Transitions or its representatives.