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If the Development Agreement for a Jersey Mikes franchise contains provisions inconsistent with sections 705/19 and 705/20 of the Illinois Franchise Disclosure Act, which terms will control?

Jersey_Mikes Franchise · 2025 FDD

Answer from 2025 FDD Document

  • Sections 705/19 and 705/20 of the Act provide rights to Developer concerning nonrenewal and termination of the Development Agreement. If the Development Agreement contains a provision that is inconsistent with the Act, the Act will control.

Source: Item 23 — RECEIPTS (FDD pages 77–421)

What This Means (2025 FDD)

According to Jersey Mikes' 2025 Franchise Disclosure Document, if there are inconsistencies between the Development Agreement and sections 705/19 and 705/20 of the Illinois Franchise Disclosure Act, the Act will take precedence. This ensures that developers' rights concerning nonrenewal and termination of the Development Agreement, as provided by the Act, are protected.

This means that any clause in the Development Agreement that contradicts the Illinois Franchise Disclosure Act regarding nonrenewal or termination is superseded by the stipulations in the Act. For example, if the Development Agreement has a clause allowing termination with less notice than required by Illinois law, the state law will govern, providing the franchisee with the legally mandated notice period.

Jersey Mikes includes this modification to ensure compliance with Illinois law, specifically the Illinois Attorney General's Office requirements. This modification aims to protect prospective Jersey Mikes developers by ensuring the franchise agreement adheres to Illinois law. This also applies to any release of claims or acknowledgments of fact within the Development Agreement that might negate judicial review of actions violating the Act; such releases are considered void under Illinois law.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.