Under Illinois law, are the acknowledgments made by the Exit franchisee in Section 41 allowed?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
If this Agreement is governed by the laws of the State of Illinois, then: (1) the acknowledgments made by Franchisee in Section 41 are not allowed under the Illinois Franchise Disclosure Act and (2) any provision of this Agreement which designates jurisdiction or venue outside of the State of Illinois is void
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
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 of the agreement are not allowed under the Illinois Franchise Disclosure Act. This means that any statements or acknowledgments a franchisee makes in Section 41 that could be interpreted as waiving rights or disclaiming reliance on the franchisor's statements may not be enforceable in Illinois.
This provision protects franchisees in Illinois by ensuring they cannot inadvertently waive their legal rights through acknowledgments in the franchise agreement. It also prevents Exit from enforcing acknowledgments that might disadvantage the franchisee.
Prospective Exit franchisees in Illinois should be aware that this clause provides them with additional protection under state law, specifically regarding acknowledgments made within the franchise agreement. They should consult with a legal professional to fully understand their rights and obligations under Illinois law and the franchise agreement.