What law governs the Ledgers Franchise Agreement in Illinois?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
As to franchises governed by the Illinois Franchise Disclosure Act, if any of the terms of the Disclosure Document or Franchise Agreement are inconsistent with the terms below, the terms below control.
- A. Illinois law governs the Franchise Agreement.
- B. In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
- C. The conditions under which your Franchise Agreement can be terminated and your rights upon nonrenewal may be affected by Sections 19 and 20 of the Illinois Franchise Disclosure Act.
- D. In conformance with Section 41 of the Illinois Franchise Disclosure Act, any condition, stipulation, or provision of the Franchise Agreement purporting to bind you to waive compliance with any provision of the Illinois Franchise Disclosure Act or any other law of the State of Illinois is void.
- E. Item 5 of the FDD and Item 2.1 of the Franchise Agreement are modified with the addition of the following language: 'The franchisor defers the collection of all initial fees from Illinois franchisees until the franchisor has completed all its pre-opening obligations and franchisee is open for business."
- F. No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, for franchises governed by the Illinois Franchise Disclosure Act, Illinois law governs the Franchise Agreement. This means that the legal framework and statutes of Illinois will be used to interpret and enforce the agreement between Ledgers and the franchisee in Illinois.
This also means that if any terms in the Disclosure Document or Franchise Agreement are inconsistent with the Illinois Franchise Disclosure Act, the terms of the Act will take precedence. This ensures that franchisees in Illinois are protected by the specific provisions and regulations of Illinois franchise law.
Additionally, any provision in the Ledgers Franchise Agreement that designates jurisdiction and venue in a forum outside of Illinois is void, although the agreement may allow for arbitration to occur outside of Illinois. This protects Illinois franchisees from having to resolve disputes in distant or inconvenient locations.