What section of the Crisp & Green Franchise Agreement addresses governing law?
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, Section 18.08 of the Franchise Agreement, which previously addressed governing law, has been deleted and replaced. The updated agreement specifies that Illinois law will now govern the agreement.
This means that the Crisp & Green franchise agreement, including its interpretation and enforcement, will be subject to Illinois law. This is a significant point for prospective franchisees, as the laws of Illinois will dictate how disputes are resolved and how the agreement is interpreted.
Furthermore, Section 18.21 is added to address the Illinois Franchise Disclosure Act, which states that any attempt to waive compliance with the Act or any other Illinois law is void. It also specifies that franchisee rights upon termination and non-renewal are detailed in Sections 19 and 20 of the Illinois Franchise Disclosure Act. This ensures that franchisees operating in Illinois receive the protections afforded to them under Illinois law, regardless of any conflicting provisions in the franchise agreement.