Does the Illinois Addendum allow a Deka Lash franchisee to waive compliance with any provision of the Illinois Franchise Disclosure Act?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
ILLINOIS ADDENDUM TO THE FRANCHISE AGREEMENT
If any of the terms of the Franchise Agreement are inconsistent with the terms below, the terms below control
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- Illinois law governs the Franchise Agreement.
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- 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.
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- Franchisee rights upon termination and non-renewal are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act.
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- In conformance with Section 41 of the Illinois Franchise Disclosure Act, 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.
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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.
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- Surety Bond. The Franchise Agreement is modified to also provide the following: "Based on our current financial condition, the Illinois Attorney General's Office has required a financial assurance which is being satisfied by posting a surety bond which we filed with the Illinois Attorney General's Office."
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, the Illinois Addendum explicitly prohibits franchisees from waiving compliance with any provision of the Illinois Franchise Disclosure Act. Specifically, the addendum states that any condition, stipulation, or provision in the Franchise Agreement that attempts to bind the franchisee to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void. This protection extends to statements, questionnaires, or acknowledgments signed by the franchisee in connection with starting the franchise.
This provision ensures that Deka Lash franchisees in Illinois retain all their rights and protections under Illinois franchise law. It prevents Deka Lash from enforcing any agreement that would force a franchisee to give up their legal rights or claims, including claims related to fraud in the inducement or reliance on statements made by the franchisor. This is a standard practice in franchise law to protect franchisees from overreaching by franchisors.
The Illinois Addendum also addresses the governing law, venue, and jurisdiction. It specifies that Illinois law governs the Franchise Agreement and that any provision designating jurisdiction or venue outside of Illinois is void, although arbitration may occur outside the state. Furthermore, the addendum mentions a surety bond required by the Illinois Attorney General's Office due to Deka Lash's current financial condition, providing additional financial assurance for Illinois franchisees.