What Illinois statute governs the franchise disclosure requirements for Cinnabon?
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
- Notice Required By Law:
THE TERMS AND CONDITIONS UNDER WHICH WE MAY TERMINATE YOUR FRANCHISE AND YOUR RIGHTS ON NON-RENEWAL MAY BE AFFECTED BY ILLINOIS LAW, 815 ILCS §§ 705/19 AND 705/20.
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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.
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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, the Illinois Franchise Disclosure Act of 1987, Ill. Comp. Stat. §§ 705/1 through 705/44, governs the franchise disclosure requirements for Cinnabon in the State of Illinois. This statute necessitates that Cinnabon amend its Disclosure Document for use in Illinois to ensure compliance.
Several provisions are put in place to protect franchisees in Illinois. The terms and conditions under which Cinnabon may terminate a franchise or the franchisee's rights upon non-renewal are affected by Illinois law, specifically 815 ILCS §§ 705/19 and 705/20. The Illinois Franchise Disclosure Act ensures that franchisees are not strong-armed into waiving their rights under the Act through specific clauses in the franchise agreement.
Furthermore, any clause within the Franchise Agreement that designates jurisdiction and venue outside of Illinois is considered void concerning any cause of action enforceable in Illinois. Section 21.1, titled "Your Acknowledgements," is also deleted from all Illinois Franchise Agreements to further protect the franchisee's rights under Illinois law.