What is the required action for both Floyds 99 Franchising, LLC and the franchisee regarding the Illinois Rider?

According to the 2025 Floyds 99 Franchise Disclosure Document, both Floyds 99 Franchising, LLC and the franchisee must execute and deliver the Illinois Rider concurrently with the execution of the Franchise Agreement. This indicates that the rider is a mandatory part of the franchise agreement for franchisees operating in Illinois. The rider includes several provisions specific to Illinois law, modifying the standard franchise agreement to comply with Illinois regulations.

The Illinois Rider addresses key aspects of the franchise relationship, including governing law, payment of the initial franchise fee, advertising and marketing campaigns, franchisee rights upon termination and non-renewal, and waivers of compliance with the Illinois Franchise Disclosure Act. For example, the rider stipulates that Illinois law governs the agreement (except where federal law applies) and defers payment of the initial franchise fee until Floyds 99 completes its initial obligations and the franchisee is open for business. This deferral is mandated by the Illinois Attorney General's Office based on Floyds 99's financial statements.

Furthermore, the rider clarifies that franchisees cannot waive compliance with the Illinois Franchise Disclosure Act or disclaim reliance on statements made by Floyds 99. It also addresses the franchisor's right to require franchisees to contribute up to $25,000 for opening advertising and marketing campaigns. These provisions aim to protect the franchisee's rights and ensure compliance with Illinois franchise laws. The inclusion of such a rider is a common practice in franchising to address state-specific legal requirements and provide additional clarity and protection for franchisees.