For Embassy Suites licensees in Illinois, which law governs the Franchise Agreement?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Items 17 (v) and (w) are amended to state that the provisions of the Franchise Agreement and all other agreements concerning governing law, jurisdiction, venue, choice of law and waiver of jury trials will not constitute a waiver of any right conferred upon you by the Illinois Franchise Disclosure Act. The Illinois Franchise Disclosure Act will govern the Franchise Agreement with respect to Illinois licensees and any other person under the jurisdiction of the Illinois Franchise Disclosure Act.
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- 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 this Act or any other law of this State is void." This shall not prevent any person from entering into a settlement agreement or executing a general release regarding a potential or actual lawsuit filed under the provisions of the Illinois Franchise Disclosure Act, nor shall it prevent the arbitration of any claims according to the provisions of Title 9 of the United States Code.
Source: Item 23 — RECEIPTS (FDD pages 97–305)
What This Means (2025 FDD)
According to the 2025 Embassy Suites Franchise Disclosure Document, the Illinois Franchise Disclosure Act governs the Franchise Agreement for Embassy Suites licensees in Illinois. Specifically, the FDD states that the provisions regarding governing law, jurisdiction, venue, choice of law, and waiver of jury trials will not waive any rights conferred by the Illinois Franchise Disclosure Act. This ensures that Illinois franchisees retain the protections provided by Illinois law.
This means that certain aspects of the franchise relationship, particularly those related to franchisee rights and disclosures, are subject to Illinois state law. The Illinois Franchise Disclosure Act takes precedence over conflicting provisions in the standard Embassy Suites Franchise Agreement. This is designed to protect franchisees operating in Illinois.
Furthermore, the FDD notes that any attempt to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void. However, this does not prevent franchisees from entering into settlement agreements or arbitrating claims under the United States Code. This provision reinforces the protective nature of the Illinois Franchise Disclosure Act while allowing for dispute resolution through settlement or arbitration under specific conditions.
Prospective Embassy Suites franchisees in Illinois should carefully review the Illinois Franchise Disclosure Act to understand their rights and protections under state law. They should also consult with a legal professional to ensure full compliance and understanding of how the Illinois Franchise Disclosure Act interacts with the Embassy Suites Franchise Agreement.