Where in the Illinois Franchise Disclosure Act are Fat Shack franchisees' rights upon termination and non-renewal set forth?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
THE PARTIES ACKNOWLEDGE THAT IN THE EVENT THAT THE TERMS OF THIS AGREEMENT REGARDING TERMINATION OR EXPIRATION ARE INCONSISTENT WITH APPLICABLE STATE OR FEDERAL LAW, SUCH LAW SHALL GOVERN FRANCHISEE'S RIGHTS REGARDING TERMINATION OR EXPIRATION OF THIS AGREEMENT. CERTAIN OF THESE LAWS ARE SET FORTH IN THE RIDERS TO FRANCHISE AGREEMENT FOR SPECIFIC STATES AND PROVINCES ATTACHED HERETO AS EXHIBIT VI.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
Based on the 2025 Fat Shack Franchise Disclosure Document, the agreement acknowledges that state and federal laws may supersede the terms of the franchise agreement regarding termination or expiration. Specifically, Section 19.10 states that if any terms in the agreement concerning termination or expiration are inconsistent with applicable state or federal law, those laws will govern the franchisee's rights.
The FDD further mentions that specific state laws are detailed in the riders attached as Exhibit VI. Therefore, for Illinois Fat Shack franchisees, their rights upon termination and non-renewal would be found in the Illinois rider within Exhibit VI of the Franchise Agreement.
Prospective franchisees should carefully review Exhibit VI and consult with legal counsel to understand their rights and obligations under Illinois law regarding termination and non-renewal, as these rights may differ from the standard terms outlined in the franchise agreement.