factual

For Churchs Chicken franchisees in Illinois, what does Section 4 of the Illinois Franchise Disclosure Act address?

Churchs_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

This Addendum to the Church's Texas Chicken Franchise Agreement dated
("Franchise limited liability Agreement") between CAJUN GLOBAL LLC, d/b/a Church's Texas Chicken a Delaware company ("Cajun"), and , a formed in
Agreement. ("Franchisee") is entered into simultaneously with the execution of the Franchise
1. Franchise Franchisee was the Franchised located, in the The provisions of this Addendum form an integral part of, and are incorporated into the Agreement. This Addendum is being executed because: (A) the offer or sale of a franchise to made in the State of Illinois; Franchisee is a resident of the State of Illinois; and/or (B) (C) Restaurant will be located and/or operated, and/or all or part of the Protected Area will be State of Illinois.
2. The
following
sentence
is
added
at
the
end
of
Section
27.A.
of
the
Franchise
Agreement:
Notwithstanding
the
foregoing,
Illinois
law
shall
govern
this
Agreement.
3. The
following
sentence
is
added
to
the
end
of
Section
27.B.
of
the
Franchise
Agreement:
Section
4
of
the
Illinois
Franchise
Disclosure
Act
provides
that
any
provision
in
a
franchise
agreement
which
designates
jurisdiction
or
venue
in
a
forum
outside
of
Illinois
is
void
with
respect
to
any
cause
of
action
which
otherwise
is
enforceable
in
Illinois.

Source: Item 22 — CONTRACTS (FDD pages 67–68)

What This Means (2025 FDD)

According to Churchs Chicken's 2025 Franchise Disclosure Document, Section 4 of the Illinois Franchise Disclosure Act addresses venue and jurisdiction for Illinois franchisees. Specifically, it states that any provision in the franchise agreement that designates jurisdiction or venue in a forum outside of Illinois is void with respect to any cause of action that is otherwise enforceable in Illinois.

In simpler terms, this means that Churchs Chicken franchisees in Illinois cannot be forced to resolve disputes in a legal venue outside of Illinois if the cause of action is enforceable within Illinois. This provision protects the franchisee's right to pursue legal action within their home state.

This stipulation is included as an addendum to the standard Churchs Chicken franchise agreement for franchisees in Illinois. This addendum ensures that the franchise agreement complies with Illinois state law, specifically the Illinois Franchise Disclosure Act.

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.
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