What law governs the Chicken Guy Restaurant Development Agreement for developers in Illinois?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Illinois law governs the Development Agreement.
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- In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of 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 of an agreement are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act.
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- In conformance with section 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 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 40–46)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, the Restaurant Development Agreement for developers in Illinois is governed by Illinois law. The FDD also states that any provision designating jurisdiction and venue outside of Illinois is void, as per Section 4 of the Illinois Franchise Disclosure Act. However, the agreement can stipulate that arbitration may occur outside of Illinois.
Furthermore, the FDD highlights that franchisees' rights upon termination and non-renewal are protected by sections 19 and 20 of the Illinois Franchise Disclosure Act. Any attempt to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void, as stated in conformance with section 41 of the Act.
Finally, the FDD emphasizes that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law, including claims related to fraud in the inducement, or disclaim reliance on statements made by Chicken Guy or its representatives. This provision takes precedence over any conflicting terms in any document related to the franchise agreement, ensuring that franchisees retain their legal rights under Illinois law.