factual

What law governs the Closet Storage Concepts Franchise Agreement in Illinois?

Closet_Storage_Concepts Franchise · 2025 FDD

Answer from 2025 FDD Document

The following items must be included within the Disclosure Document and Franchise Agreement and shall replace any conflicting language that is in the Disclosure Document and the Franchise Agreement, to the extent applicable:

    1. Illinois law governs the Franchise Agreement.
    1. In conformance with Section 4 of the lllinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of lllinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
    1. Franchisees' rights upon Termination and Non-Renewal are set forth in sections 19 and 20 of the lllinois Franchise Disclosure Act.
    1. 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 llinois Franchise Disclosure Act or any other law of Illinois is void.
    1. No statement, questionnaire, or acknowledgment 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 any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.

Source: Item 23 — RECEIPTS (FDD pages 59–238)

What This Means (2025 FDD)

According to Closet Storage Concepts' 2025 Franchise Disclosure Document, for franchisees in Illinois, the Franchise Agreement is governed by Illinois law. This means that the legal framework and interpretation of the agreement will be based on the laws and regulations of the State of Illinois. This is important because Illinois law will dictate how disputes are resolved and how the agreement is enforced.

Furthermore, any provision within the Closet Storage Concepts franchise agreement that designates jurisdiction and venue in a forum outside of Illinois is considered void under Illinois law. This protects franchisees by ensuring that legal proceedings related to the franchise agreement typically occur within Illinois. However, the agreement may still allow for arbitration to take place outside of Illinois, which is a common alternative dispute resolution method.

In addition, the FDD states that franchisees' rights upon termination and non-renewal are specifically protected under sections 19 and 20 of the Illinois Franchise Disclosure Act. Also, any attempt to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void. This ensures that franchisees cannot unknowingly or unwillingly give up their legal protections under Illinois law. Finally, no statement signed by a franchisee can waive claims under state franchise law or disclaim reliance on statements made by Closet Storage Concepts.

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.