Regarding Embassy Suites franchise agreements, does subsection 16.2.2 concerning jurisdiction and venue waive any rights conferred upon the franchisee by the Illinois Franchise Disclosure Act?

According to the 2025 Embassy Suites Franchise Disclosure Document, subsection 16.2.2 of the Franchise Agreement, which addresses jurisdiction and venue, will not constitute a waiver of any right conferred upon a franchisee by the Illinois Franchise Disclosure Act. This protection is specifically outlined in the Illinois Addendum to the Franchise Agreement. This means that even though the standard agreement might specify certain jurisdictions for legal actions, an Illinois franchisee retains all rights granted to them under Illinois franchise law.

This provision is significant for prospective Embassy Suites franchisees in Illinois because it ensures that their rights under the Illinois Franchise Disclosure Act are fully protected. Franchise agreements often contain clauses that could potentially limit a franchisee's legal rights or require them to litigate disputes in a specific jurisdiction, which might be unfavorable to the franchisee. However, this addendum explicitly prevents subsection 16.2.2 from overriding the protections provided by Illinois law.

Furthermore, the Illinois Addendum reinforces this protection by stating that any condition, stipulation, or provision in the Franchise Agreement that attempts to waive compliance with the Illinois Franchise Disclosure Act or any other law of the state is void. This ensures that the Illinois Franchise Disclosure Act governs the Franchise Agreement with respect to Illinois franchisees and anyone else under the jurisdiction of the Act. This provision offers a strong safeguard for franchisees operating in Illinois, ensuring they are not unknowingly relinquishing their legal rights.

In addition to the protection regarding jurisdiction and venue, the Illinois Addendum also addresses other potential waivers. Specifically, it states that subsection 17.1 of the Franchise Agreement, which contains a waiver of jury trial, also does not constitute a waiver of any right conferred upon the franchisee by the Illinois Franchise Disclosure Act. This comprehensive approach ensures that multiple aspects of the Franchise Agreement cannot be used to undermine the rights of Illinois franchisees under state law.