factual

Which section is deleted from all Cinnabon Franchise Agreements for Illinois franchisees?

Cinnabon Franchise · 2025 FDD

Answer 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:

    1. 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.
    1. 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."
    1. 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 the 2025 Cinnabon Franchise Disclosure Document, Section 21.1, entitled "Your Acknowledgements", is deleted from all Cinnabon Franchise Agreements executed in Illinois. This deletion is part of an addendum to the standard franchise agreement that recognizes the requirements of the Illinois Franchise Disclosure Act. This act aims to protect franchisees by ensuring certain rights are not waived through contractual terms.

This means that the standard acknowledgements typically included in the franchise agreement, which might obligate the franchisee to certain statements or confirmations, are removed for Illinois franchisees. This change ensures that franchisees in Illinois retain all rights granted to them under Illinois law, preventing any potential waiver of these rights through the franchise agreement's standard terms.

Prospective Cinnabon franchisees in Illinois should carefully review the Illinois addendum to understand how it modifies the standard franchise agreement. They should also consult with a legal professional to fully understand their rights and obligations under both the franchise agreement and Illinois law. This ensures they are fully aware of the protections afforded to them by the state's franchise regulations.

Disclaimer: This information is extracted from the 2025 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.