Regarding Jersey Mikes franchises in Illinois, what happens to any release of claims or acknowledgements of fact in the Franchise Agreement that negate judicial review of statements violating the Illinois Franchise Disclosure Act?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Any release of claims or acknowledgments of fact contained in the Franchise Agreement that would negate or remove from judicial review any statement, misrepresentation or action that would violate the Act, or a rule or order under the Act shall be void and are hereby deleted with respect to claims under the Act.
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- The following language is added to the end of Section 27.8 of the Franchise Agreement:
- "HOWEVER, THIS SECTION 27 SHALL NOT ACT AS A CONDITION, STIPULATION OR PR OVISION PURPORTING TO BIND ANY P ERSON ACQUIRING ANY FRANCHIS E TO WAIVE COMPLIANCE WITH ANY PROVISION OF THE ACT ANY OTHER LAW OF ILLINOIS."
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- The following language is added to the end of Section 28 of the Franchise Agreement:
- "HOWEVER, NOTHING CONTAINED IN THIS SECTION 28 SHALL CONSTITUTE A CONDITION, STI PULATION, OR PROVISION PURPORTING TO BIND ANY P ERSON TO WAVE COMPLIANCE WITH ANY PROVISION OF THE ACT OR ANY OTHER LAW OF THE STATE OF ILLINOIS, TO THE EXTENT APPLICABLE."
- 6 Each provision of this Amendment shall be effective only to the extent that the jurisdictional requirements of the Act, with respect to each such provision, are met independent of this Amendment. This Amendment shall have no force or effect if such jurisdictional requirements are not met.
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- As to any state law described in this Amendment that declares void or unenforceable any provision contained in the Franchise Agreement, Franchisor reserves the r ight to challenge the
Source: Item 23 — RECEIPTS (FDD pages 77–421)
What This Means (2025 FDD)
According to Jersey Mikes's 2025 Franchise Disclosure Document, the Illinois Attorney General's Office mandates specific amendments to franchise documents to ensure compliance with Illinois law, particularly the Franchise Disclosure Act of 1987. These amendments directly impact the enforceability of certain provisions within the Franchise Agreement.
Specifically, any release of claims or acknowledgments of fact included in the Jersey Mikes Franchise Agreement that would negate or remove from judicial review any statement, misrepresentation, or action that violates the Illinois Franchise Disclosure Act is considered void and is effectively deleted with respect to claims made under the Act. This means that franchisees in Illinois retain their right to judicial review regarding potential violations of the Act, regardless of any conflicting clauses in the Franchise Agreement.
Furthermore, additional language is incorporated into Sections 27.8 and 28 of the Franchise Agreement to reinforce this protection. This added language clarifies that these sections cannot be interpreted as binding any person acquiring a Jersey Mikes franchise to waive compliance with any provision of the Illinois Franchise Disclosure Act or any other Illinois law. This ensures that franchisees' rights under Illinois law are preserved and cannot be inadvertently relinquished through standard contractual clauses.
It's important to note that each of these amendments is only effective if the jurisdictional requirements of the Illinois Franchise Disclosure Act are independently met. Jersey Mikes retains the right to challenge the enforceability of any state law that declares a provision of the Franchise Agreement void or unenforceable.