What happens if the Kidokinetics Franchise Agreement is inconsistent with the Illinois Franchise Disclosure Act?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
To the extent that the Franchise Agreement is inconsistent with the Illinois Franchise Disclosure Act, Illinois law will control and supersede any inconsistent provision(s).
Section 41 of the Illinois Franchise Disclosure Act states that "any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with any provision of this Act or any other law of this State is void." The Franchise Agreement is amended accordingly. To the extent that the Franchise Agreement would otherwise violate Illinois law, such Agreement is amended by providing that all litigation by or between you and us, arising directly or indirectly from the Franchise relationship, will be commenced and maintained in the state courts of Illinois or, at our election, the United States District Court for Illinois, with the specific venue in either court system determined by appropriate jurisdiction and venue requirements, and Illinois law will pertain to any claims arising under the Illinois Franchise Disclosure Act.
The termination and non-renewal provisions in the Franchise Agreement and the FDD may not be enforceable under Sections 19 and 20 of the Illinois Franchise Disclosure Act.
Source: Item 23 — RECEIPT (FDD pages 59–205)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, if there are inconsistencies between the Franchise Agreement and the Illinois Franchise Disclosure Act, Illinois law will take precedence and override any conflicting provisions. This means that Kidokinetics franchisees in Illinois are protected by Illinois state law, regardless of what the franchise agreement might state. This ensures that franchisees are not bound by terms that violate Illinois law.
Specifically, the FDD notes that certain provisions, such as those related to termination and non-renewal, may not be enforceable under Sections 19 and 20 of the Illinois Franchise Disclosure Act. Furthermore, any attempt to waive compliance with the Act or any other Illinois law is void. This protects the franchisee from unknowingly giving up their legal rights.
Additionally, the FDD clarifies that litigation between Kidokinetics and its Illinois franchisees must occur in Illinois state or federal courts, and Illinois law will govern claims arising under the Illinois Franchise Disclosure Act. This ensures that disputes are resolved within the state and under its legal framework, providing a level of legal certainty and protection for franchisees operating in Illinois.