What law governs dispute resolution arising from the Kidokinetics agreement or relationship of the parties in Illinois?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Sections 4 and 41 and Rule 608 of the Illinois Franchise Disclosure Act states that court litigation must take place before Illinois federal or state courts and all dispute resolution arising from the terms of this Agreement or the relationship of the parties and conducted through arbitration or litigation shall be subject to Illinois law. The FDD, Franchise Agreement and Supplemental Agreements are amended accordingly.
The governing law or choice of law clause described in the FDD and contained in the Franchise Agreement and Supplemental Agreements is not enforceable under Illinois law. This governing law clause shall not be construed to negate the application of Illinois law in all situations to which it is applicable.
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.
Source: Item 23 — RECEIPT (FDD pages 59–205)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, for franchisees in Illinois, dispute resolution arising from the terms of the Franchise Agreement or the relationship of the parties is governed by Illinois law. This applies to dispute resolution conducted through arbitration or litigation. The FDD, Franchise Agreement, and Supplemental Agreements are amended to reflect this.
Kidokinetics's governing law or choice of law clause described in the FDD and contained in the Franchise Agreement and Supplemental Agreements is not enforceable under Illinois law. This means that despite any clauses suggesting another state's laws apply, Illinois law will take precedence in situations where it is applicable.
Furthermore, any condition, stipulation, or provision that attempts to waive compliance with the Illinois Franchise Disclosure Act or any other law of the state is void. The Franchise Agreement is amended to ensure that all litigation between the franchisee and Kidokinetics, arising directly or indirectly from the franchise relationship, will be commenced and maintained in the state courts of Illinois or, at Kidokinetics's election, the United States District Court for Illinois. Illinois law will specifically pertain to any claims arising under the Illinois Franchise Disclosure Act.