What specific items of the Ledgers FDD are modified for Illinois franchisees?
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, Item 22 outlines specific modifications to the franchise agreement for Illinois franchisees. Illinois law governs the franchise agreement, and any provision designating jurisdiction and venue outside of Illinois is void, although arbitration outside the state is permitted. The Illinois Franchise Disclosure Act may affect the conditions for termination and rights upon nonrenewal.
Furthermore, any condition in the agreement that requires a franchisee to waive compliance with Illinois law is void. Item 5 of the FDD and Item 2.1 of the Franchise Agreement are modified to defer the collection of initial fees from Illinois franchisees until Ledgers has completed all pre-opening obligations and the franchisee is open for business.
Finally, no statement or acknowledgment signed by a franchisee can waive claims under Illinois franchise law, including fraud in the inducement, or disclaim reliance on statements made by Ledgers or its representatives. This provision supersedes any other conflicting term in any document related to the franchise agreement.