For Cicis franchises in Illinois, what law governs the Area Development Agreement and Franchise Agreement, excluding federal laws like the Lanham Act and the United States Arbitration Act?

According to Cicis's 2025 Franchise Disclosure Document, for franchises in Illinois, the Area Development Agreement and Franchise Agreement are governed by Illinois law, excluding the United States Trademark Act of 1946 (Lanham Act), the United States Arbitration Act, and other federal laws. This means that Illinois state laws will primarily dictate the interpretation and enforcement of these agreements. This is detailed in Item 20 of the FDD.

This provision is significant for prospective Cicis franchisees in Illinois because it ensures that their franchise agreements are interpreted under the legal framework of Illinois. This can provide a level of predictability and familiarity, as franchisees are subject to the laws of their own state. It also means that any disputes arising from the agreement are more likely to be resolved in Illinois courts, unless arbitration is agreed upon, which can be more convenient and cost-effective for franchisees operating in Illinois.

It is important to note that while Illinois law governs the agreements, certain federal laws like the Lanham Act (related to trademarks) and the U.S. Arbitration Act still apply. Additionally, the Illinois Franchise Disclosure Act includes provisions that protect franchisees, such as voiding any agreement terms that designate jurisdiction outside of Illinois or that waive compliance with Illinois law. Cicis franchisees should be aware of these protections and consult with legal counsel to fully understand their rights under both state and federal laws.