For Spray Net, what questions does the franchisee waive for the purpose of carrying out the jurisdiction provision?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
Illinois law governs the agreements between the parties to this franchise.
Section 4 of the Illinois Franchise Disclosure Act provides that any provision in a franchise agreement that designates jurisdiction of venue outside the State of Illinois is void. However, a franchise agreement may provide for arbitration outside of Illinois.
Section 41 of the Illinois Franchise Disclosure Act provides that 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.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to the 2025 Spray Net Franchise Disclosure Document, the Illinois Addendum states that any provision in a franchise agreement that designates jurisdiction of venue outside the State of Illinois is void. However, the franchise agreement may provide for arbitration outside of Illinois.
Additionally, Section 41 of the Illinois Franchise Disclosure Act states that 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. This means that franchisees cannot waive their rights to compliance with the Illinois Franchise Disclosure Act or any other Illinois law.
In practical terms, this means that if a Spray Net franchisee in Illinois has a legal dispute with the franchisor, they generally cannot be forced to litigate the dispute in a state outside of Illinois. They also cannot waive their rights under Illinois franchise law. This provides some protection for franchisees, ensuring that they can pursue legal claims in a familiar jurisdiction and that their rights under state law are upheld. However, the franchisee can be required to participate in arbitration outside of Illinois.