If I am a resident of Illinois and want to open a Cream franchise, does this section apply to me?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
The following provisions are annexed to and form part of this Agreement if and only if, and in such case to the extent that: (a) you are domiciled in the State of Illinois or (b) the offer of the franchise is made or accepted in the State of Illinois and your franchised business is or will be operated in the State of Illinois.
- The following language is added to the end of the Agreement:
Except for the U.S. Federal Arbitration Act and other federal laws in the U.S., the laws of the State of Illinois will govern this Agreement.
Section 4 of the Illinois Franchise Disclosure Act provides that any provision in a 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 rights upon termination and non-renewal of a franchise agreement are subject to sections 19 and 20 of the Illinois Franchise Disclosure Act.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the state-specific riders for Illinois apply to you if you are domiciled in Illinois, or if the offer of the franchise is made or accepted in Illinois and your franchised business is or will be operated in Illinois.
Specifically, Illinois law dictates that, with the exception of the U.S. Federal Arbitration Act and other federal laws, the laws of Illinois will govern the Franchise Agreement. Furthermore, any provision in a franchise agreement that designates jurisdiction or venue outside of Illinois is void, although the agreement may provide for arbitration outside of Illinois.
Additionally, the Illinois Franchise Disclosure Act stipulates that any condition, stipulation, or provision that attempts to bind a person acquiring a franchise to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void. Your rights upon termination and non-renewal of a franchise agreement are also subject to sections 19 and 20 of the Illinois Franchise Disclosure Act.