What is the name of the act that the Illinois amendment to the Pearce Bespoke Franchise Agreement references?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
In recognition of the requirements of the Illinois Franchise Disclosure Act, 815 ILCS §§ 705/1 et seq. (1987) (the "Act"), which govern the attached Board and Brush Creative Studio Franchise Agreement (the "Franchise Agreement"), the parties thereto agree as follows:
- To the extent of any inconsistences, the Franchise Agreement is hereby amended to further state:
"Section 4 of the Act provides that no franchisee shall be required to litigate any cause of action, with the exception of arbitration proceedings, arising under the Franchise Agreement or the Act outside of the State of Illinois."
- To the extent of any inconsistences, the Franchise Agreement is hereby amended to further state:
"Illinois law governs the terms of this Franchise Agreement."
- 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."
- To the extent of any inconsistencies, the Franchise Agreement is hereby amended to further state:
"To the extent any provision regarding termination or renewal of the Franchise Agreement is inconsistent with the Illinois Franchise Disclosure Act §§ 815 ILCS §§ 705/19 and 705/20, the provisions of these sections of the Act will control."
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 Pearce Bespoke Franchise Agreement references the Illinois Franchise Disclosure Act, 815 ILCS §§ 705/1 et seq. (1987). This Act governs the Board and Brush Creative Studio Franchise Agreement.
The amendment includes stipulations that reinforce the Act's provisions. Specifically, it states that franchisees cannot be required to litigate outside of Illinois, with the exception of arbitration proceedings, for any cause of action arising under the Franchise Agreement or the Act. It also clarifies that Illinois law governs the terms of the Franchise Agreement.
Furthermore, the amendment highlights that any attempt to waive compliance with the Act or any other Illinois law is void. However, franchisees are not prevented from entering into settlement agreements or executing general releases regarding potential lawsuits, nor are they prevented from arbitrating claims under Title 9 of the United States Code. Finally, the amendment ensures that the provisions of the Illinois Franchise Disclosure Act §§ 815 ILCS §§ 705/19 and 705/20 will control any inconsistencies regarding termination or renewal of the Franchise Agreement.