What law governs the Cinnaholic Franchise Agreement for franchises offered or sold to a resident of Illinois or a non-resident who will be operating a Cinnaholic franchise in Illinois?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
The following Addendum modifies and supersedes the Cinnaholic Franchising, LLC Market Development Agreement (the "Agreement") with respect to CINNAHOLIC franchises offered or sold to either a resident of the State of Illinois or a non-resident who will be operating a CINNAHOLIC franchise in the State of Illinois pursuant to the Illinois Franchise Disclosure Act of 1987, Ill. Comp. Stat. §§ 705/1 through 705/44, as follows:
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- Illinois law governs the Franchise Agreement(s).
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- Payment of Initial Franchise/Development Fees will be deferred until Franchisor has met its initial obligations to franchisee, and franchisee has commenced doing business. This financial assurance requirement was imposed by the Office of the Illinois Attorney General due to Franchisor's financial condition.
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- 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.
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- Your rights upon Termination and Non-Renewal are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act.
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- In conformance with section 41 of the Illinois Franchise Disclosure Act, any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
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- No statement, questionnaire or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of: (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on behalf of the Franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 42–50)
What This Means (2025 FDD)
According to the 2025 Cinnaholic Franchise Disclosure Document, the Cinnaholic Franchise Agreement for franchises offered or sold to a resident of Illinois or a non-resident who will be operating a Cinnaholic franchise in Illinois is governed by Illinois law. This is according to the Cinnaholic Franchising, LLC Addendum to the Market Development Agreement for Illinois.
This addendum modifies and supersedes the standard Cinnaholic Market Development Agreement to comply with the Illinois Franchise Disclosure Act of 1987. It specifically applies to franchises offered or sold to Illinois residents or non-residents operating a Cinnaholic franchise within the state.
Several provisions are included in the addendum to protect franchisees in Illinois. For example, any provision in the franchise agreement that designates jurisdiction and venue in a forum outside of Illinois is void, although arbitration may take place outside of Illinois. Additionally, franchisees' rights upon termination and non-renewal are protected under sections 19 and 20 of the Illinois Franchise Disclosure Act. The addendum also ensures that franchisees cannot waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law, and it prevents statements or acknowledgments from waiving claims under state franchise law or disclaiming reliance on the franchisor.