What law governs the Market Hold Agreement for Epcon Communities in Illinois?

According to Epcon Communities' 2025 Franchise Disclosure Document, for Market Hold Agreements in Illinois, Illinois law governs the agreement. The FDD specifies that any provision in the franchise agreement that designates jurisdiction and venue outside of Illinois is void, as per Section 4 of the Illinois Franchise Disclosure Act. However, the franchise agreement can stipulate that arbitration may occur outside of Illinois. The rights of the franchisee regarding termination and non-renewal are protected under sections 19 and 20 of the Illinois Franchise Disclosure Act. Furthermore, in compliance with section 41 of the Illinois Franchise Disclosure Act, any condition that requires a person acquiring a franchise to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is considered void.

This addendum ensures that franchisees operating in Illinois receive the protections mandated by Illinois law, regardless of what the standard Market Hold Agreement might state. This is particularly important for venue and jurisdiction, ensuring that legal disputes are handled within the state, which can reduce costs and logistical challenges for the franchisee. The explicit mention of the Illinois Franchise Disclosure Act underscores the franchisor's commitment to adhering to state-specific regulations, providing a level of assurance to potential franchisees.

For a prospective Epcon Communities franchisee in Illinois, this addendum offers significant legal safeguards. Knowing that Illinois law governs the Market Hold Agreement and that certain provisions attempting to circumvent Illinois law are void provides a more secure legal framework. Franchisees should still consult with legal counsel to fully understand their rights and obligations under both the Market Hold Agreement and the Illinois Franchise Disclosure Act.