Does the Crisp & Green Illinois addendum specify any required actions by the franchisee?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
- GOVERNING LAW. Section 18.08 of the Franchise Agreement is deleted and replaced with the following:
Illinois law shall govern this Agreement.
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- ILLINOIS FRANCHISE DISCLOSURE ACT. The following language is added as Section 18.21 of the Franchise Agreement:
- 18.21 Illinois Franchise Disclosure Act. Section 41 of the Illinois Franchise Disclosure Act states that any condition, stipulation, or provision purporting to bind any person acquiring any franchise to waive compliance with any provision of the Act or any other law of Illinois is void. Franchisee's rights upon termination and non-renewal of a franchise agreement are set forth in Section 19 and 20 of the Illinois Franchise Disclosure Act.
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- 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 66–252)
What This Means (2024 FDD)
According to the 2024 Crisp & Green Franchise Disclosure Document, the Illinois addendum modifies the franchise agreement to comply with Illinois law. Specifically, it addresses the forum for litigation, stating that any provision designating jurisdiction or venue outside of Illinois is void, as per the Illinois Franchise Disclosure Act. This means an Illinois franchisee cannot be forced to litigate disputes in another state. The addendum also stipulates that Illinois law governs the agreement, overriding any clauses that might suggest otherwise.
Furthermore, the addendum includes a provision ensuring that no statement or acknowledgment signed by the franchisee can waive rights under Illinois franchise law, including claims of fraud. This protects the franchisee from inadvertently relinquishing legal protections. The Illinois addendum also modifies Item 17 of the disclosure document, emphasizing that any provision designating jurisdiction or venue outside of Illinois is void, reinforcing the franchisee's right to litigate within the state.
In practical terms, these stipulations mean that Crisp & Green franchisees in Illinois have specific legal protections and rights within the state. They are entitled to have disputes resolved under Illinois law and within Illinois courts, and they cannot waive their rights through standard franchise agreement clauses. These modifications ensure that Illinois franchisees receive the full protection of Illinois franchise law, which is a significant benefit for those operating in the state.