For Cinnabon franchisees under the jurisdiction of the Illinois Franchise Disclosure Act, will any provision in the Franchise Agreement that designates jurisdiction and venue in a forum outside of Illinois be considered valid?
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 Franchise Agreement, for franchises offered and sold in the State of Illinois or to Illinois residents, is amended to include the following:
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- The provisions of the Franchise Agreement on governing law, jurisdiction, and choice of law will not be a waiver of any right conferred on you by the Illinois Franchise Disclosure Act. Illinois law will govern the Franchise Agreement with respect to Illinois franchisees. 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.
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- 815 ILCS § 705/41 (Illinois Franchise Disclosure Act) states that "any condition, stipulation, or provision purporting to bind any person acquiring any franchise to waive compliance with any provision of this Act or any other law of this State is void."
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- Section 21.1 (Your Acknowledgements) is deleted from all Illinois Franchise Agreements.
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, any part of the Franchise Agreement that stipulates jurisdiction and venue in a location outside of Illinois is considered void. This applies specifically to any legal action that is otherwise enforceable within Illinois. This protection is in place because Illinois law governs the Franchise Agreement for Illinois franchisees, ensuring that franchisees are not forced to litigate disputes in a potentially inconvenient or distant forum.
This provision is designed to protect the rights of Cinnabon franchisees in Illinois by ensuring that they are not compelled to waive any rights granted to them under the Illinois Franchise Disclosure Act. The Illinois Franchise Disclosure Act stipulates that any condition or provision that attempts to bind a person acquiring a franchise to waive compliance with the Act or any other law of the state is void. This addendum reinforces the franchisee's rights and provides a level of legal protection within the state.
In practical terms, this means that if an Illinois-based Cinnabon franchisee has a dispute with the franchisor that leads to legal action, the franchisee generally cannot be forced to pursue that action in a court outside of Illinois. This can save the franchisee significant costs and inconvenience related to travel, legal representation, and other logistical challenges. It also ensures that the dispute will be resolved under Illinois law, which may be more favorable to the franchisee in certain situations. This is a significant benefit for prospective franchisees in Illinois, as it provides added assurance that their legal rights will be protected within their home state.