If there are inconsistencies between the Zoomin Groomin Franchise Disclosure Document and the Illinois Franchise Disclosure Act, which terms will control?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
As to franchises governed by the Illinois Franchise Disclosure Act, if any of the terms of the Franchise Disclosure Document or Franchise Agreement are inconsistent with the terms below, the terms below control.
- A. Illinois law governs the Franchise Agreement.
- B. 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.
- C. The conditions under which your Franchise Agreement can be terminated and your rights upon nonrenewal may be affected by Sections 19 and 20 of the Illinois Franchise Disclosure Act.
- D. In conformance with Section 41 of the Illinois Franchise Disclosure Act, any condition, stipulation, or provision of the Franchise Agreement purporting to bind you to waive compliance with any provision of the Illinois Franchise Disclosure Act or any other law of the State of Illinois is void.
- E. 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.
- F. Payment of the initial franchise fee shall be deferred until Franchisor has satisfied its preopening obligations to Franchisee and Franchisee has commenced doing business. The Illinois Attorney General's Office imposed this deferral requirement due to Franchisor's financial condition.
Source: Item 17 — g. of the Disclosure Document is modified to state that, in addition to the grounds for immediate termination specified in Item 17.h., the franchisor can terminate upon written notice and a 60 day opportunity to cure for a breach of the Franchise Agreement. (FDD pages 51–65)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, the terms of the Illinois Franchise Disclosure Act will control if there are any inconsistencies between the Franchise Disclosure Document or the Franchise Agreement and the Illinois Franchise Disclosure Act, for franchises governed by the Illinois Franchise Disclosure Act.
Specifically, Illinois law governs the Franchise Agreement. Any provision designating jurisdiction and venue outside of Illinois is void, although arbitration may occur outside of Illinois. The Illinois Franchise Disclosure Act's Sections 19 and 20 may affect the conditions for termination and rights upon nonrenewal. Any attempt to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void.
Furthermore, no statement or acknowledgment signed by a franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Zoomin Groomin or its representatives. This provision overrides any conflicting terms in any document related to the franchise. Finally, payment of the initial franchise fee is deferred until Zoomin Groomin has fulfilled its pre-opening obligations and the franchisee has commenced business, a requirement imposed by the Illinois Attorney General's Office due to Zoomin Groomin's financial condition.