What law governs the Chatime Multi-Unit Development Agreement?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
In recognition of the requirements of the Illinois Franchise Disclosure Act of 1987, the parties to the Chatime Franchise, LLC Multi-Unit Development Agreement (the "Multi-Unit Development Agreement") agree as follows:
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- Illinois law governs the Multi-Unit Development Agreement.
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- In conformance with §4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction or venue in a forum outside the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to the 2025 Chatime Franchise Disclosure Document, the Illinois Amendment to the Chatime Multi-Unit Development Agreement states that Illinois law governs the Multi-Unit Development Agreement. This means that the agreement's interpretation and enforcement will be subject to Illinois state laws.
This is significant for prospective franchisees in Illinois because any legal disputes or interpretations of the agreement will be handled within the Illinois legal system. Franchisees should familiarize themselves with Illinois franchise laws to understand their rights and obligations under the agreement.
Additionally, the amendment specifies that any provision in the franchise agreement that designates jurisdiction or venue outside of Illinois is void, although arbitration may take place outside of the state. This ensures that Illinois franchisees are not forced to resolve disputes in a potentially inconvenient or unfamiliar legal environment, providing a degree of protection under Illinois law.