What is the purpose of the 'State Addenda' included in the Lees Famous Recipe Franchise Disclosure Document?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT G
STATE SPECIFIC ADDENDA TO FRANCHISE DISCLOSURE DOCUMENT AND FRANCHISE AGREEMENT
Addendum to Franchise Disclosure Document for Illinois Franchisees
These provisions are an amendment to the Franchise Disclosure Document. This Amendment is hereby incorporated into and made a part of the Franchise Disclosure Document:
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- Notwithstanding anything different in the Franchise Disclosure Document, Illinois law governs the franchise agreement(s).
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- Notwithstanding anything different in the Franchise Disclosure Document, 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.
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- Notwithstanding anything different in the Franchise Disclosure Document, Franchisees' rights upon termination and non-renewal are set forth in Sections 19 and 20 of the Illinois Franchise Disclosure Act.
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- Notwithstanding anything different in the Franchise Disclosure Document, in conformance with Section 41 of the Illinois Franchise Disclosure Act, 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.
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- 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.
Addendum to Franchise Agreement for Illinois Franchisees
The Attorney General of Illinois requires the following specific disclosures to be made to prospective Illinois franchisees. These provisions are an amendment to the Franchise Agreement. This Amendment is hereby incorporated into and made a part of the Franchise Agreement to the extent the following paragraphs amend the respective sections of the Franchise Agreement as set forth below:
Source: Item 22 — CONTRACTS (FDD pages 69–70)
What This Means (2025 FDD)
According to the 2025 Lees Famous Recipe Franchise Disclosure Document, the 'State Specific Addenda' serves to amend both the Franchise Disclosure Document (FDD) and the Franchise Agreement to reflect specific state laws. For instance, the addendum for Illinois franchisees modifies the standard FDD and Franchise Agreement to comply with the Illinois Franchise Disclosure Act.
The Illinois addendum includes several key provisions. It stipulates that Illinois law governs the franchise agreement, regardless of any conflicting terms in the standard agreement. It also voids any clause that designates jurisdiction and venue outside of Illinois, although arbitration may still occur out of state. Furthermore, the addendum reinforces franchisees' rights upon termination and non-renewal as defined in the Illinois Franchise Disclosure Act.
Additionally, the addendum ensures that franchisees cannot waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law. It also prevents statements or acknowledgments from franchisees that waive claims under state franchise law or disclaim reliance on franchisor statements. These addenda are crucial for ensuring that the franchise agreement adheres to the specific legal requirements of each state, providing franchisees with additional protections and rights as mandated by state law.