What state law governs the Craters & Freighters Franchise Agreement in Illinois?
Craters_Freighters Franchise · 2025 FDDAnswer 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 Franchise Agreement is governed by Illinois law for franchisees operating in Illinois. The FDD specifies that any provision within the franchise agreement that designates jurisdiction and venue in a forum outside of Illinois is void, protecting franchisees from having to resolve disputes in distant or inconvenient locations. However, the agreement may stipulate that arbitration can occur outside of Illinois.
Additionally, the Craters & Freighters FDD states that the rights of the franchisee regarding termination and non-renewal are protected under sections 19 and 20 of the Illinois Franchise Disclosure Act. This ensures that franchisees are aware of their statutory rights concerning the continuation or ending of the franchise relationship.
Furthermore, any condition, stipulation, or provision that attempts to obligate a franchisee to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void. This provision reinforces the protection of franchisees by preventing them from unknowingly or unwillingly giving up their legal rights under Illinois law. This ensures that Craters & Freighters franchisees in Illinois retain all the protections afforded to them under Illinois state law.