factual

Does the Crisp & Green Illinois addendum create any exceptions to the standard Franchise Agreement?

Crisp_Green Franchise · 2024 FDD

Answer from 2024 FDD Document

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NOTE: IF THE FRANCHISEE IS AN ENTITY, AN OFFICER AND EACH PRINCIPAL OWNER MUST EXECUTE THIS FRANCHISEE ACKNOWLEDGMENT.

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ADDENDUM TO THE CRISP & GREEN FRANCHISE AGREEMENT FOR THE STATE OF ILLINOIS

This Addendum pertains to franchises sold in the State of Illinois and is for the purpose of complying with Illinois statutes and regulations. This Addendum shall be of no force and effect unless the jurisdictional requirements of the Illinois Franchise laws and any regulations thereunder are met independently without reference to this Addendum.

    1. BACKGROUND. Franchisor and Franchisee are parties to that certain Franchise Agreement dated _______ (the "Agreement"), that has been entered into concurrently with the entering of this Addendum. This Addendum is annexed to and forms part of the Agreement, and the defined terms set forth in the Agreement are used in this Addendum with the same meanings ascribed to them in the body of the Agreement. This Addendum is being executed because the Franchised Restaurant to be operated by Franchisee pursuant to the Agreement will be located in the State of Minnesota and/or because Franchisee is a resident of the State of Minnesota.
    1. AMENDMENTS. Notwithstanding anything which may be contained in the body of the Agreement to the contrary, the Agreement is amended as follows:
    1. FORUM FOR LITIGATION. The following sentence is added to the end of Section 18.07 ("Jurisdiction and Venue") of the Franchise Agreement:

Section 4 of the Illinois Franchise Disclosure Act provides that any provision in a franchise agreement which designates jurisdiction or venue in a forum outside of Illinois is void.

  1. GOVERNING LAW. Section 18.08 of the Franchise Agreement is deleted and replaced with the following:

Illinois law shall govern this Agreement.

    1. ILLINOIS FRANCHISE DISCLOSURE ACT.

Source: Item 23 — RECEIPTS (FDD pages 66–252)

What This Means (2024 FDD)

According to the 2024 Crisp & Green Franchise Disclosure Document, the Illinois addendum does create exceptions to the standard franchise agreement for franchisees operating in Illinois. Specifically, the addendum addresses the forum for litigation and governing law, ensuring compliance with the Illinois Franchise Disclosure Act. This means that certain provisions of the standard agreement are superseded by Illinois law to protect the franchisee's rights within the state.

The addendum modifies the standard Franchise Agreement to ensure that any clause designating jurisdiction or venue outside of Illinois is void, as mandated by Section 4 of the Illinois Franchise Disclosure Act. Additionally, the standard agreement's governing law provision is replaced, stipulating that Illinois law will govern the agreement. These changes prevent Crisp & Green from enforcing provisions that might require Illinois franchisees to litigate disputes in other states or under different states' laws.

Furthermore, the addendum includes a clause stating that no statement or acknowledgment signed by the franchisee can waive claims under Illinois franchise law, including claims of fraud. This provision reinforces the franchisee's rights and protections under Illinois law, superseding any conflicting terms in other documents related to the franchise agreement. These modifications are designed to provide Illinois franchisees with specific legal protections and ensure compliance with Illinois state law.

Disclaimer: This information is extracted from the 2024 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.