factual

Does the Craters & Freighters Franchise Agreement specify the state law that governs the agreement?

Craters_Freighters Franchise · 2025 FDD

Answer from 2025 FDD Document

ILLINOIS

Illinois law governs the Franchise Agreement(s).

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.

Your rights upon Termination and Non-Renewal are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act.

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.

Source: Item 22 — CONTRACTS (FDD pages 49–50)

What This Means (2025 FDD)

According to the 2025 Craters & Freighters Franchise Disclosure Document, the governing state law for the franchise agreement varies by state. For franchisees in Illinois, Illinois law governs the Franchise Agreement. The FDD specifies that any provision designating jurisdiction and venue outside of Illinois is void, although arbitration may occur outside the state. The rights upon termination and non-renewal are detailed in sections 19 and 20 of the Illinois Franchise Disclosure Act, and any attempt to waive compliance with Illinois law is void.

For California, the franchise agreement requires application of Colorado law, but this may not be enforceable under California law. The FDD also notes that California Business and Professions Code Sections 20000 through 20043 provide rights to the franchisee concerning termination, transfer, or non-renewal, and if the franchise agreement is inconsistent with this law, the law will control. Additionally, the arbitration will occur in Golden, Colorado, and prospective franchisees are encouraged to seek legal counsel to determine the applicability of California and federal laws to any provisions restricting venue to a forum outside of California.

For franchisees in Washington, in the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW will prevail. RCW 19.100.180 may supersede the franchise agreement in the franchisee's relationship with Craters & Freighters, including the areas of termination and renewal. Court decisions may also supersede the franchise agreement in these areas. Section 15.4 of the Franchise Agreement will not apply in the State of Washington, and Sections 25.5(d)(i) through 25.5(d)(v) of the Franchise Agreement will also not apply in Washington.

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.