What law governs the Fat Shack Franchise Agreement in Illinois?
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, there is no specific mention of which law governs the Franchise Agreement for franchisees in Illinois within the provided excerpts. The document includes addenda for Indiana and New York, specifying modifications to the standard agreement and applicable state laws for those locations. However, there is no similar addendum or clause specifying governing law for Illinois.
Item 19.10 generally states that if any terms in the agreement regarding termination or expiration are inconsistent with applicable state or federal law, then that law will govern the franchisee's rights. It also mentions that certain state laws are set forth in riders to the Franchise Agreement for specific states. However, without a specific rider for Illinois, it's unclear which laws would take precedence.
A prospective Fat Shack franchisee in Illinois should seek clarification from the franchisor regarding which state's laws govern the Franchise Agreement, or if there are any specific Illinois state laws that would apply. This information is crucial for understanding their rights and obligations under the agreement.