What is the effect of signing the Illinois Rider to the Clean Your Dirty Face franchise agreement?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
Except for U.S. Federal Arbitration Act and other federal laws in the U.S., the laws of the State of Illinois law shall govern the Franchise Agreement.
- The following is added to Item 17 of the Disclosure Document:
Section 4 of the Illinois Franchise Disclosure Act provides that any provision in the franchise agreement that designates jurisdiction or venue outside the State of Illinois is void. However, a franchise agreement may provide for arbitration outside of Illinois.
Section 41 of the Illinois Franchise Disclosure Act provides that 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
Your right upon termination and non-renewal of a franchise agreement are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 44–49)
What This Means (2025 FDD)
According to the 2025 Clean Your Dirty Face Franchise Disclosure Document, the Illinois Rider modifies certain aspects of the franchise agreement to comply with Illinois law. Specifically, it ensures that franchisees do not waive rights granted to them under the Illinois Franchise Disclosure Act.
The rider includes provisions that protect Illinois franchisees. It stipulates that no statement, questionnaire, or acknowledgment signed by the franchisee can waive claims under Illinois franchise law, including claims of fraud. It also ensures that Illinois law governs the agreement, except for the U.S. Federal Arbitration Act and other federal laws.
Furthermore, the Illinois Rider addresses venue and jurisdiction, stating that any provision designating jurisdiction or venue outside of Illinois is void, although arbitration outside of Illinois is permitted. It also reinforces that franchisees cannot waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law. The rider also specifies that the franchisee's rights upon termination and non-renewal are subject to sections 19 and 20 of the Illinois Franchise Disclosure Act.
In short, the Illinois Rider is designed to protect the rights of Clean Your Dirty Face franchisees in Illinois by ensuring compliance with Illinois state laws and preventing the waiver of rights under the Illinois Franchise Disclosure Act.