For Cinnabon franchisees under the jurisdiction of the Illinois Franchise Disclosure Act, what law governs the Franchise Agreement?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
In recognition of the requirements of the Illinois Franchise Disclosure Act of 1987, Ill. Comp. Stat. §§ 705/1 through 705/44, the Disclosure Document for Cinnabon Franchisor SPV LLC for use in the State of Illinois is amended to include the following:
ITEM 17 RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION
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- The provisions of the Franchise Agreement, and all other agreements concerning governing law, jurisdiction, and choice-of-law, will not constitute a waiver of any right conferred on you by the Illinois Franchise Disclosure Act. Illinois law will govern the Franchise Agreement with respect to franchisees under the jurisdiction of the Illinois Franchise Disclosure Act. Consistent with the foregoing, any provision in the Franchise Agreement that designates jurisdiction and venue in a forum outside of Illinois is void with respect to any cause of action that is otherwise enforceable in Illinois.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, for franchisees operating under the jurisdiction of the Illinois Franchise Disclosure Act, Illinois law governs the Franchise Agreement. This means that the legal framework and statutes of Illinois will be used to interpret and enforce the terms of the agreement between Cinnabon and its franchisees in Illinois.
Specifically, the FDD states that the standard provisions in Cinnabon's Franchise Agreement regarding governing law, jurisdiction, and choice of law do not override any rights conferred to the franchisee by the Illinois Franchise Disclosure Act. Furthermore, any clause within the Franchise Agreement that designates jurisdiction and venue in a location outside of Illinois is considered void concerning any legal action that is otherwise enforceable within Illinois.
This stipulation protects Cinnabon franchisees in Illinois by ensuring that they are not forced to waive their rights under Illinois law or litigate disputes in a different state. It also reinforces that Illinois franchisees have the right to pursue legal action in Illinois if the cause of action is enforceable there. This addendum ensures that Cinnabon franchisees in Illinois are afforded the full protection of their local laws.