factual

Does the amendment to the Cinch I.T. Franchise Agreement for Illinois address binding arbitration?

Cinch_I_T Franchise · 2024 FDD

Answer from 2024 FDD Document

Illinois law governs the Franchise Agreement.

In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.

Source: Item 23 — RECEIPTS (FDD pages 60–269)

What This Means (2024 FDD)

According to Cinch I.T.'s 2024 Franchise Disclosure Document, the amendment to the franchise agreement for Illinois addresses binding arbitration. Specifically, it states that while Illinois law dictates that any provision designating jurisdiction and venue outside of Illinois is void, the franchise agreement can still provide for arbitration to occur outside of Illinois. This means that Cinch I.T. franchisees in Illinois may be required to participate in arbitration outside of the state, even though they cannot be forced to litigate disputes outside of Illinois.

This clause is included in the addendum to the Franchise Disclosure Document for Cinch I.T. in the state of Illinois. This addendum modifies the franchise agreement to comply with Illinois law. It also states that franchisees' rights regarding termination and non-renewal are protected under the Illinois Franchise Disclosure Act.

Furthermore, any attempt to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void. This ensures that Cinch I.T. franchisees in Illinois retain their legal rights and protections under state law, regardless of what the franchise agreement might otherwise state. This provision aims to protect franchisees from unknowingly relinquishing their rights.

Disclaimer: This information is extracted from the 2024 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.