To what extent does the Illinois Franchise Disclosure Act apply to the Kitchen Solvers franchise agreement?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
conflict between this Addendum and the Area Development Agreement, the terms and conditions of this Addendum shall apply.
| YOU: | WE: KS LA CROSSE INVESTMENTS, LLC |
|---|---|
| By: | By: |
| Its: | Its: |
IN WITNESS WHEREOF, the undersigned have executed this Addendum as of the date
Franchisor signs below.
ADDENDUM TO KITCHEN SOLVERS® FRANCHISE AGREEMENT FOR THE STATE OF ILLINOIS
To the extent the Illinois Franchise Disclosure Act, Ill. Comp. Stat. §§705/1 – 705/44 applies, the terms of this Addendum apply.
- Notwithstanding anything to the contrary contained in the Franchise Agreement, to the extent that the Franchise Agreement contains provisions that are inconsistent with the following, such provisions are hereby amended:
Illinois law governs the Franchise Agreement.
Section 4 of the Illinois Franchise Disclosure Act provides that any provision in a franchise agreement that designates jurisdiction or venue outside the State of Illinois is void. However, a franchise agreement may provide for arbitration outside of Illinois.
Section 41 of the Illinois Franchise Disclosure Act provides that any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
Your rights upon termination and non-renewal of a franchise agreement are set forth in section 19 and 20 of the Illinois Franchise Disclosure Act.
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- Any capitalized terms that are not defined in this Addendum shall have the meaning given them in the Franchise Agreement.
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- The Illinois Attorney General's Office has required us to defer the collection of any initial franchise fees and/or development fees until we have satisfied our pre-opening obligations to the franchisee and the franchisee has commenced business operations. The Illinois Attorney General's Office imposed this deferral requirement due to Franchisor's financial condition.
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Source: Item 23 — Receipts (FDD pages 49–190)
What This Means (2025 FDD)
According to the 2025 Kitchen Solvers Franchise Disclosure Document, the Illinois Franchise Disclosure Act significantly impacts the franchise agreement for franchisees in Illinois. To ensure compliance with Illinois law, Kitchen Solvers includes an addendum to both the Franchise Agreement and the Area Development Agreement specifically addressing the Illinois Franchise Disclosure Act, Ill. Comp. Stat. §§705/1 – 705/44. This addendum modifies certain provisions of the standard agreements to align with Illinois regulations.
Several key aspects of the franchise relationship are governed by the Illinois Franchise Disclosure Act. The addendum explicitly states that Illinois law governs both the Franchise Agreement and the Area Development Agreement. It also highlights that any provision designating jurisdiction or venue outside of Illinois is void, although arbitration outside of Illinois is permitted. Furthermore, any attempt to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is also void. The FDD specifies that franchisee rights upon termination and non-renewal are protected under sections 19 and 20 of the Illinois Franchise Disclosure Act.
Due to Kitchen Solvers' financial condition, the Illinois Attorney General's Office has mandated that Kitchen Solvers defer the collection of any initial franchise fees and/or development fees until they have fulfilled their pre-opening obligations to the franchisee and the franchisee has commenced business operations. This requirement is a direct result of the franchisor's financial situation and is designed to protect the interests of the franchisee. Additionally, a specific provision in Section 16.B of the Franchise Agreement, related to the franchisee's independent investigation and reliance on representations, is deleted to ensure compliance with Illinois law. These modifications underscore the importance of the Illinois Franchise Disclosure Act in regulating the Kitchen Solvers franchise within the state.
In summary, the Illinois Franchise Disclosure Act plays a crucial role in governing the Kitchen Solvers franchise agreement in Illinois. The addendum ensures that the franchise agreement complies with Illinois law, protects franchisee rights, and addresses specific concerns raised by the Illinois Attorney General's Office. Prospective franchisees in Illinois should carefully review the addendum to understand how the Illinois Franchise Disclosure Act modifies the standard Kitchen Solvers franchise agreement.