factual

What Illinois law specifically requires modifications to the Christian Brothers Automotive franchise documents?

Christian_Brothers_Automotive Franchise · 2025 FDD

Answer from 2025 FDD Document

ILLINOIS LAW MODIFICATIONS

    1. The Illinois Attorney General requires that certain provisions contained in franchise documents be amended to be consistent with Illinois law, including the Franchise Disclosure Act of 1987, 815 ILCS 705/1 – 705/44 (the "Act"), specifically section 705/41 of the Act. To the extent that the Disclosure Document and/or Agreement contain provisions that are inconsistent with the following, such provisions are hereby amended:
  • a. The Agreement requires the Franchisee to execute a release of claims or to acknowledge facts that would negate or remove from judicial review any statement, misrepresentation or action of CBAC that would violate the Act, or a rule or order under the Act. Such release shall exclude claims arising under the Act, and such acknowledgments shall be void with respect to claims under the Act. Section 41 of the Act states that any condition, stipulation, or provision (in our Agreement) purporting to waive compliance with any provision of this Act or any other law of this State is void.
  • b. The Agreement and Item 17 of the Disclosure Document designate a jurisdiction, forum and venue and choice of law outside of Illinois. This requirement shall not be interpreted to limit any rights that Franchisee may have under Sec. 705/4 of the Act, to bring suit in the state of Illinois. Applicable sections of the Franchise Agreement and Item 17v and 17w of the Disclosure Document are hereby amended to indicate Illinois as the governing law and choice of forum.
  • c. The Agreement contains certain provisions regarding termination and non-renewal of franchise and notice and opportunity to cure. To the extent any provision of the Agreement and/or the Disclosure Document are inconsistent with Sections 705/19 - 705/20 of the Act, those provisions of the Agreement and/or Disclosure Document are hereby amended accordingly.
  • d. Exhibit G of the Agreement, titled "Franchisee Disclosure Acknowledgment Statement," is hereby deleted and shall have no force or effect.
  • e. 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,

Source: Item 22 — CONTRACTS (FDD page 76)

What This Means (2025 FDD)

According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, the Illinois Attorney General mandates specific changes to franchise documents to ensure compliance with Illinois law. This includes the Franchise Disclosure Act of 1987, specifically section 705/41 of the Act.

The modifications address several key areas. Firstly, any franchisee release of claims that negates Christian Brothers Automotive's responsibility for violating the Act is amended to exclude claims arising under the Act. Secondly, the agreement's designation of jurisdiction, forum, venue, and choice of law outside of Illinois is modified to allow franchisees to bring suit in Illinois, as per Sec. 705/4 of the Act, designating Illinois law as the governing law and choice of forum. Thirdly, provisions regarding termination, non-renewal, notice, and opportunity to cure are amended to align with Sections 705/19 - 705/20 of the Act.

Additionally, Exhibit G of the agreement, titled "Franchisee Disclosure Acknowledgment Statement," is deleted entirely. Finally, no statement or acknowledgment signed by a franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Christian Brothers Automotive or its representatives. These modifications collectively ensure that the Christian Brothers Automotive franchise agreement adheres to Illinois law and protects the rights of franchisees within the state.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.