What law governs the Degree Wellness Disclosure Document and Franchise Agreement?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
Illinois law governs the Franchise Agreement. 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-Renewals of an agreement are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, Illinois law governs the Franchise Agreement for franchisees in Illinois. Specifically, Section 4 of the Illinois Franchise Disclosure Act states that any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of Illinois is void. However, the agreement may still provide for arbitration to take place outside of Illinois.
This means that if a Degree Wellness franchisee in Illinois has a legal dispute with the company, they generally cannot be forced to litigate the case in a state other than Illinois. This provision aims to protect Illinois franchisees from franchisors who might try to force them into unfavorable legal environments. However, it's important to note that this protection does not extend to arbitration, which can still occur outside of Illinois if the franchise agreement stipulates it.
Furthermore, the FDD states that the rights of Illinois franchisees upon termination and non-renewal of an agreement are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act. This means that Illinois law provides specific protections and guidelines for franchisees in the event that their franchise agreement is terminated or not renewed, which Degree Wellness must adhere to.