Who is the regulatory authority for Chatime franchises in Illinois?
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 Franchise Agreement (the "Franchise Agreement") agree as follows:
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- Illinois law governs the Franchise 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.
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- Your rights upon Termination and Non-Renewal are set forth in §§19 and 20 of the Illinois Franchise Disclosure Act.
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- In conformance with §41 of the Illinois Franchise Disclosure Act, 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.
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- No statement, questionnaire, or acknowledgement 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 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
The 2025 Chatime Franchise Disclosure Document (FDD) does not explicitly state which specific regulatory authority in Illinois oversees Chatime franchises. However, it does acknowledge the Illinois Franchise Disclosure Act of 1987 and states that Illinois law governs the franchise agreement.
Several provisions within the Illinois Amendment to the Chatime Franchise Agreement address compliance with the Illinois Franchise Disclosure Act. These provisions cover aspects such as jurisdiction, venue, franchisee rights upon termination or non-renewal, and waivers of compliance with Illinois law. The FDD emphasizes that any terms contradicting the Illinois Franchise Disclosure Act are void, ensuring franchisees' rights are protected under state law.
While the FDD mentions the Illinois Franchise Disclosure Act and its implications, it does not provide the name and contact information of the specific regulatory body responsible for enforcing the act. A prospective Chatime franchisee in Illinois should seek clarification from Chatime or consult with a legal professional to identify the relevant state agency for franchise-related matters.