For Cicis franchises, what happened to the 'Summary' section of Item 17.w. concerning 'Choice of law'?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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- The "Summary" section of Item 17.v. entitled "Choice of forum" is deleted in its entirety.
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- The "Summary" section of Item 17.w. entitled "Choice of law" is deleted in its entirety and replaced with the following:
Except for the United States Trademark Act of 1946 (Lanham Act, 15 U.S.C. 1051 et seq.), the United States Arbitration Act (9 U.S.C. 1 et seq.), or other federal law, Illinois law shall apply to and govern the Area Development Agreement and Franchise Agreement.
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Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 58–64)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, specific modifications are made to Item 17.w, entitled "Choice of law," for franchisees in Illinois and Maryland.
For Illinois franchisees, the "Summary" section of Item 17.w is entirely deleted and replaced. The replacement specifies that Illinois law will govern the Area Development Agreement and Franchise Agreement, except for matters concerning the United States Trademark Act of 1946 (Lanham Act), the United States Arbitration Act, or other federal law. This means that most legal disputes will be subject to Illinois law, providing a degree of legal certainty for franchisees operating in that state.
For Maryland franchisees, the "Summary" section for the Area Development Agreement and Franchise Agreement of Item 17(w), entitled "Choice of law" is amended to add that a franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. Furthermore, any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise. This amendment ensures that Maryland franchisees have the right to pursue legal claims related to franchise registration and disclosure within their own state, subject to a specific statute of limitations.
These modifications highlight the importance of state-specific franchise laws and how Cicis adapts its franchise agreements to comply with these regulations. Prospective franchisees should carefully review these state-specific amendments to understand their rights and obligations under the franchise agreement, particularly concerning choice of law and legal recourse.