If the Extreme Art Studio Franchise Agreement violates Illinois law, how is it amended?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
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." The Franchise Agreement is amended accordingly. To the extent that the Franchise Agreement would otherwise violate Illinois law, such Agreement is amended by providing that all litigation by or between you and us, arising directly or indirectly from the Franchise relationship, will be commenced and maintained in the state courts of Illinois or, at our election, the United States District Court for Illinois, with the specific venue in either court system determined by appropriate jurisdiction and venue requirements, and Illinois law will pertain to any claims arising under the Illinois Franchise Disclosure Act.
Item 17.v, In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a Franchise Agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, a Franchise Agreement may provide for arbitration to take place outside of Illinois.
Item 17.w, In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a Franchise Agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, a Franchise Agreement may provide for arbitration to take place outside of Illinois.
Your rights upon Termination and Non-Renewal are set forth in Sections 19 and 20 of the Illinois Franchise Disclosure Act.
Under Section 705/27 of the Illinois Franchise Disclosure Act, no action for liability under the Illinois Franchise Disclosure Act can be maintained unless brought before the expiration of three (3) years after the act or transaction constituting the violation upon which it is based, the expiration of one (1) year after you become aware of facts or circumstances reasonably indicating that you may have a claim for relief in respect to conduct governed by the Act, or 90 days after delivery to you of a written notice disclosing the violation, whichever shall first expire. To the extent that the Franchise Agreement is inconsistent with the Illinois Franchise Disclosure Act, Illinois law will control and supersede any inconsistent provision(s).
Source: Item 23 — RECEIPTS (FDD pages 49–214)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, several provisions address how the Franchise Agreement is amended to comply with Illinois law. The Illinois Franchise Disclosure Act states that any condition that waives compliance with the Act or any other Illinois law is void. Therefore, the Franchise Agreement is amended accordingly. Specifically, any litigation between the franchisee and Extreme Art Studio arising from the franchise relationship must be commenced and maintained in Illinois state courts or the United States District Court for Illinois, with the venue determined by jurisdiction and venue requirements. Illinois law will govern any claims arising under the Illinois Franchise Disclosure Act.
Furthermore, any provision in the Franchise Agreement that designates jurisdiction and venue outside of Illinois is void, although the agreement may allow for arbitration to take place outside of Illinois. The franchisee's rights upon termination and non-renewal are governed by Sections 19 and 20 of the Illinois Franchise Disclosure Act. No action for liability under the Illinois Franchise Disclosure Act can be maintained unless brought within three years after the act or transaction constituting the violation, one year after becoming aware of facts indicating a potential claim, or 90 days after receiving written notice disclosing the violation, whichever expires first. To the extent that the Franchise Agreement is inconsistent with the Illinois Franchise Disclosure Act, Illinois law will control and supersede any inconsistent provisions.
In essence, these stipulations ensure that Illinois franchisees of Extreme Art Studio are protected by Illinois law, and any conflicting terms in the Franchise Agreement are automatically superseded by Illinois law. This provides a level of legal protection and clarity for franchisees operating in Illinois, ensuring that their rights are upheld within the state's legal framework. The FDD, Franchise Agreement, and Supplemental Agreements are amended to reflect these requirements.