As of the date of this Pearce Bespoke Franchise Disclosure Document, what is the filing status for Illinois?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
ADDENDUM TO THE FRANCHISE DISCLOSURE DOCUMENT PURSUANT TO THE ILLINOIS FRANCHISE DISCLOSURE ACT
Illinois law shall apply to and govern the Franchise Agreement.
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.
Franchisee's right upon Termination and Non-Renewal are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act.
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 is void.
No statement, questionnaire or acknowledgement 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 behalf of the Franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
AMENDMENT TO THE PEARCE BESPOKE FRANCHISING LLC FRANCHISE AGREEMENT REQUIRED BY THE STATE OF ILLINOIS
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, Illinois law applies to and governs the Franchise Agreement. The document includes an addendum and an amendment specifically required by the state of Illinois, indicating that Pearce Bespoke is registered or has specific legal considerations for franchising in Illinois.
The addendum states that any provision in the franchise agreement that designates jurisdiction and venue outside of Illinois is void, although arbitration may occur outside of the state. It also clarifies that franchisee rights upon termination and non-renewal are as defined in sections 19 and 20 of the Illinois Franchise Disclosure Act. Furthermore, any attempt to waive compliance with the Illinois Franchise Disclosure Act is void.
The amendment reinforces these points, stating that no franchisee can be required to litigate outside of Illinois (except for arbitration), Illinois law governs the agreement, and any provision requiring a franchisee to waive compliance with the Act is void. However, franchisees are not prevented from entering settlement agreements or executing general releases regarding lawsuits, nor are they prevented from arbitrating claims under Title 9 of the United States Code. These stipulations suggest that Pearce Bespoke has taken the necessary steps to comply with Illinois franchise law, offering franchisees certain protections and rights within the state.