If the Exit franchise agreement is governed by Illinois law, are the acknowledgments made by the franchisee in Section 41 allowed under the Illinois Franchise Disclosure Act?

According to Exit's 2025 Franchise Disclosure Document, if the franchise agreement is governed by Illinois law, the acknowledgments made by the franchisee in Section 41 are not allowed under the Illinois Franchise Disclosure Act. This means that any statements where the franchisee acknowledges certain aspects of the agreement or their understanding of it, as detailed in Section 41, would not be legally recognized or enforceable in Illinois due to conflict with the state's franchise laws.

Specifically, Section 41 of the Exit franchise agreement outlines several acknowledgments that the franchisee makes. These include acknowledging that the agreement is a legal document, that the subfranchisor advised them to seek legal counsel, and that they have reviewed the disclosure document and other relevant materials. However, if Illinois law governs the agreement, these acknowledgments are deemed invalid.

This provision protects franchisees in Illinois by ensuring that they cannot inadvertently waive their rights under the Illinois Franchise Disclosure Act through standard acknowledgments in the franchise agreement. It also voids any provision in the agreement that designates jurisdiction or venue outside of Illinois, reinforcing the franchisee's right to resolve disputes within the state.