What law governs the Chicken Guy Restaurant Franchise Agreement for Illinois franchisees?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 17: RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION]
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- Illinois law governs the Franchise 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 Franchise Agreement for Illinois franchisees is governed by Illinois law. This is explicitly stated in the addendum to the franchise agreement required for Illinois franchisees. This means that the interpretation and enforcement of the agreement will be subject to Illinois state laws.
Furthermore, the FDD specifies that any provision within the franchise agreement that designates 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. This ensures that while disputes can be arbitrated elsewhere, Illinois franchisees retain the right to resolve legal matters within their state.
The FDD also states that franchisees' rights upon termination and non-renewal are protected by sections 19 and 20 of the Illinois Franchise Disclosure Act. Additionally, any attempt to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void, reinforcing the protection afforded to franchisees under Illinois law. This provision ensures that Chicken Guy franchisees in Illinois cannot be forced to give up their legal rights under Illinois law.