Does the Illinois amendment to the Pearce Bespoke Franchise Agreement prevent the arbitration of any claim pursuant to the provisions of Title 9 of the United States Code?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
To the extent of any inconsistencies, the Franchise Agreement is hereby amended to further state:
"Section 41 of the Act provides that any condition, stipulation, or provision purporting to bind Franchisee to waive compliance with any provision of the Act, or any other Illinois law is void. The foregoing requirement, however, shall not prevent Franchisee from entering into a settlement agreement or executing a general release regarding a potential or actual lawsuit filed under any of the provisions of the Act, and shall not prevent the arbitration of any claim pursuant to the provisions of Title 9 of the United States Code."
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the Illinois amendment to the franchise agreement does not prevent the arbitration of any claim pursuant to Title 9 of the United States Code. The amendment explicitly states that it "shall not prevent the arbitration of any claim pursuant to the provisions of Title 9 of the United States Code."
This means that despite other restrictions that Illinois law places on franchise agreements, Pearce Bespoke franchisees in Illinois are still able to pursue arbitration for claims under the federal law, Title 9. This is an important clarification, as it ensures that franchisees retain access to this form of dispute resolution, which can sometimes be faster and less expensive than traditional litigation.
Prospective franchisees should be aware of this provision, as it could be relevant if disputes arise with Pearce Bespoke during the franchise term. While Illinois law generally governs the franchise agreement, this specific allowance for arbitration under federal law provides an alternative avenue for resolving conflicts.