Does the Illinois Addendum to the Learningrx Franchise Agreement allow for settlement agreements or general releases regarding lawsuits filed under the Illinois Franchise Disclosure Act?

According to the 2025 Learningrx Franchise Disclosure Document, the Illinois Addendum addresses the ability of franchisees to enter into settlement agreements or execute general releases regarding lawsuits filed under the Illinois Franchise Disclosure Act.

The Illinois Addendum specifies that while the Illinois Franchise Disclosure Act voids any provision requiring a person acquiring a franchise to waive compliance with the Act, it does not prevent them from entering into settlement agreements or executing general releases regarding potential or actual lawsuits filed under the Act. It also does not prevent the arbitration of any claim pursuant to the provisions of Title 9 of the United States Code.

In practical terms, this means that a Learningrx franchisee in Illinois retains the right to sue Learningrx for violations of the Illinois Franchise Disclosure Act. However, the franchisee is not prohibited from later settling such a lawsuit or providing a general release as part of a settlement. This clarification ensures that franchisees are not forced to waive their rights under the Act but also allows them to resolve disputes through negotiated settlements if they choose.