To what extent is each provision of the Illinois Amendment effective for Floors To Go?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
In recognition of the requirements of Illinois Franchise Disclosure Act (815 ILCS 705 §§ 1 - 44) and the Rules promulgated thereunder (4 Ill Admin Code §§ 200.100-901) the parties to the attached Membership Agreement (the "Agreement") agree to amend the Agreement as follows:
-
- Notwithstanding anything in Section 16.1 of the Agreement or otherwise in the Agreement to the contrary, Illinois law governs the agreement(s) between the parties to this franchise.
-
- Pursuant to the Illinois Franchise Disclosure Act (815 ILCS 705 § 4), any provision in a franchise agreement that designates jurisdiction or venue outside the State of Illinois is void. However, arbitration may take place outside of Illinois.
-
- Notwithstanding anything in the Agreement to the contrary, pursuant to the Illinois Franchise Disclosure Act (815 ILCS 705 § 41), any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
-
- Sections 705/19 and 705/20 of the Illinois Franchise Act provide rights to Franchisees concerning nonrenewal and termination of a franchise. If the Franchise Agreement contains a provision that is inconsistent with the Illinois Franchise Act, the Illinois Franchise Act will control.
-
- Each provision of this Amendment shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the Illinois Franchise Disclosure Act are met independently without reference to this Illinois Amendment.
-
- No statement, questionnaire or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of: (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on behalf of the Franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 Floors To Go FDD, the Illinois Amendment contains several provisions that modify the franchise agreement to comply with Illinois law. These provisions address governing law, jurisdiction, waiver of compliance, and franchisee rights upon termination or nonrenewal.
Specifically, Illinois law governs the agreement between Floors To Go and the franchisee, regardless of what the standard agreement states. Any clause designating jurisdiction or venue outside of Illinois is void, although arbitration can occur out of state. Furthermore, franchisees cannot waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law. The Illinois Franchise Act will take precedence if the Franchise Agreement has conflicting terms regarding nonrenewal and termination rights.
The Illinois Amendment states that no statement, questionnaire, or acknowledgement signed by the franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on the franchisor. Each provision of the Illinois Amendment is effective only if the jurisdictional requirements of the Illinois Franchise Disclosure Act are met independently, without relying on the amendment itself. This means that the amendment's provisions are only applicable if they are already supported by Illinois law.