Under what circumstances is the Rider to the Area Development Agreement for Cicis used in Illinois?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
involves the use of undue influence by the franchisor to induce a franchisee to surrender any rights given to him under the franchise, that provision may not be enforceable.
THE FOLLOWING PAGES IN THIS EXHIBIT ARE STATE-SPECIFIC RIDERS TO THE AREA DEVELOPMENT AGREEMENT
RIDER TO THE ON SMILE LLC AREA DEVELOPMENT AGREEMENT FOR USE IN ILLINOIS
| THIS RIDER is made and entered into by and between ON SMILE LLC, a Delaware | |||||||
|---|---|---|---|---|---|---|---|
| limited liability company with its principal business address at 13355 Noel Road, Suite 1645, | |||||||
| Dallas, | TX | 75240 | ("we," , whose principal business address | "us," | or | "our"), | and |
| is | ("you" or "your"). | ||||||
| 1. | BACKGROUND. | We and you are parties to that certain Area Development Agreement dated, 20 (the "Area Development Agreement") that has been signed concurrently with the signing of this Rider. This Rider is annexed to and forms part of the Area Development Agreement. conflicting provisions of the Area Development Agreement. Terms not otherwise defined in this Rider have the meanings as defined in the Area Development Agreement. |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 58–64)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the Rider to the Area Development Agreement is used in Illinois under specific circumstances related to the franchisee's location or the franchise offer. This rider is applied when (a) the franchisee is domiciled in the State of Illinois, or (b) the offer of the franchise is made or accepted in the State of Illinois and the Cicis Buffet Restaurants or Cicis To Go Restaurants that the franchisee develops under their Area Development Agreement are or will be located in the State of Illinois. The rider is signed concurrently with the Area Development Agreement and becomes an integral part of it.
The primary purpose of this rider is to ensure compliance with the Illinois Franchise Disclosure Act and other relevant Illinois state laws. It addresses key legal aspects such as waiver of punitive damages, jury trial rights, and limitations of claims, ensuring that franchisees do not inadvertently waive their rights under Illinois law. The rider also specifies that Illinois law governs the Area Development Agreement, except for matters covered by U.S. federal law.
For a prospective Cicis franchisee in Illinois, this rider provides additional protection and clarity regarding their rights and obligations under the Area Development Agreement. It prevents the franchisee from unknowingly waiving rights granted by the Illinois Franchise Disclosure Act. It also ensures that disputes are resolved in accordance with Illinois law, providing a more predictable legal framework. This is particularly important because the rider explicitly states that any provision in the agreement designating jurisdiction outside of Illinois is void, although dispute resolution (arbitration) may occur outside the state.
It is important for potential franchisees to carefully review this rider with legal counsel to fully understand its implications and how it modifies the standard Area Development Agreement. Understanding these state-specific modifications is crucial for protecting their investment and ensuring compliance with local laws.