What law governs the Cr3 American Exteriors Franchise Agreement for franchises in Illinois?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
ILLINOIS
As to franchises governed by the Illinois Franchise Disclosure Act, if any of the terms of the Disclosure Document are inconsistent with the terms below, the terms below control.
Illinois law governs the Franchise Agreement.
- a 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.
- b The conditions under which your Franchise Agreement can be terminated and your rights upon nonrenewal may be affected by Sections 19 and 20 of the Illinois Franchise Disclosure Act.
- c In conformance with Section 41 of the Illinois Franchise Disclosure Act, any condition, stipulation, or provision of the Franchise Agreement purporting to bind you to waive compliance with any provision of the Illinois Franchise Disclosure Act or any other law of the State of Illinois is void.
Item 5 of the FDD and Item 4 of the Franchise Agreement are modified with the addition of the following language:
"Payment of the Initial Fees will be deferred until Franchisor has met its 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."
The Franchisor reserves the right to implement "cross-territorial protocols". Make sure you ask and understand how such protocols will impact your franchised business and territory.
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 53–150)
What This Means (2025 FDD)
According to the 2025 Cr3 American Exteriors Franchise Disclosure Document, the Illinois Franchise Disclosure Act governs franchise agreements for franchises operating in Illinois. The FDD specifies that if any terms within the disclosure document are inconsistent with the terms outlined in the Illinois Franchise Disclosure Act, the terms of the Act will take precedence.
Specifically, the Illinois Franchise Disclosure Act addresses key aspects of the franchise relationship. It stipulates that any provision in the franchise agreement that designates jurisdiction and venue in a forum outside of Illinois is void, although arbitration may occur outside of the state. Additionally, the Act affects the conditions under which the Franchise Agreement can be terminated or not renewed, as well as stating that franchisees cannot waive compliance with any provision of the Illinois Franchise Disclosure Act or any other Illinois law.
Furthermore, the document notes that the payment of initial fees will be deferred until Cr3 American Exteriors has met its obligations to the franchisee and the franchisee has commenced business. This financial assurance requirement was imposed by the Office of the Illinois Attorney General due to Cr3 American Exteriors's financial condition. The FDD also states that no statement signed by a franchisee can waive claims under state franchise law or disclaim reliance on statements made by Cr3 American Exteriors.