Which state's law governs the agreements between the parties to the Deka Lash franchise in Illinois?
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 the 2024 Deka Lash Franchise Disclosure Document, for franchisees in Illinois, the agreements between the parties to the franchise are governed by Illinois law. This is specified in the Illinois Addendum to the Franchise Agreement. This means that any legal disputes or interpretations of the franchise agreement will be subject to the laws of Illinois, regardless of where Deka Lash's headquarters are located or what the standard franchise agreement might state.
This provision is included in the addendum to ensure compliance with the Illinois Franchise Disclosure Act, which aims to protect franchisees within the state. It prevents Deka Lash from enforcing terms that might require franchisees to waive their rights under Illinois law or to litigate disputes in a different jurisdiction. This protection is particularly relevant given that franchise agreements often contain clauses specifying a particular state's law and venue for dispute resolution, which could otherwise disadvantage franchisees.
Furthermore, the Illinois Addendum also addresses specific concerns raised by the Illinois Attorney General's Office regarding Deka Lash's financial condition. It stipulates that Deka Lash has provided a surety bond filed with the Attorney General's Office as a form of financial assurance. This requirement and the governing law provision collectively strengthen the legal and financial safeguards for Deka Lash franchisees operating in Illinois.