What law governs the Extreme Art Studio Franchise Agreements in Illinois?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
ILLINOIS
Sections 4 and 41 and Rule 608 of the Illinois Franchise Disclosure Act states that court litigation must take place before Illinois federal or state courts and all dispute resolution arising from the terms of this Agreement or the relationship of the parties and conducted through arbitration or litigation shall be subject to Illinois law. The FDD, Franchise Agreement and Supplemental Agreements are amended accordingly.
The governing law or choice of law clause described in the FDD and contained in the Franchise Agreement and Supplemental Agreements is not enforceable under Illinois law. Illinois law governs the Franchise Agreements. This governing law clause shall not be construed to negate the application of Illinois law in all situations to which it is applicable.
Source: Item 23 — RECEIPTS (FDD pages 49–214)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, Illinois law governs the Franchise Agreements for franchises located in Illinois. Specifically, Sections 4 and 41 and Rule 608 of the Illinois Franchise Disclosure Act mandate that any court litigation take place in Illinois federal or state courts. Furthermore, all dispute resolutions arising from the Franchise Agreement or the relationship between Extreme Art Studio and the franchisee must adhere to Illinois law. The FDD, Franchise Agreement, and any Supplemental Agreements are amended to reflect this.
The governing law or choice of law clause described in the FDD and contained in the Franchise Agreement is not enforceable under Illinois law. This ensures that Illinois law is applied in all situations where it is applicable, protecting the franchisee's rights under Illinois law.
Additionally, Section 41 of the Illinois Franchise Disclosure Act states that any condition, stipulation, or provision that attempts to waive compliance with the Act or any other law of the State is void. This means that Extreme Art Studio cannot include clauses in the Franchise Agreement that would force a franchisee to give up their rights under Illinois law. Any litigation between the franchisee and Extreme Art Studio must occur in Illinois state courts or the United States District Court for Illinois, with the specific venue determined by jurisdiction and venue requirements. Illinois law will govern any claims arising under the Illinois Franchise Disclosure Act.