Is there a geographic limit to the applicability of the Illinois Franchise Disclosure Act regarding the Zoomin Groomin franchise?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
ILLINOIS ADDENDUM TO THE FRANCHISE AGREEMENT
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- Illinois law governs the Franchise Agreement.
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- 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.
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- Franchisee rights upon termination and non-renewal are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act.
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- 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 of Illinois is void.
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- The Franchise Agreement is modified to also provide that we defer collection of all initial fees until we have satisfied our pre-opening obligations to you and you have commenced doing business under the Franchise Agreement. The Illinois Attorney General's Office imposed this deferral requirement due to our financial condition.
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- 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.
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- 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 9 — 01. Financial Statements and Exhibits. (FDD pages 68–156)
What This Means (2025 FDD)
According to the 2025 Zoomin Groomin Franchise Disclosure Document, the Illinois Addendum to the Franchise Agreement addresses the geographic limitations of the Illinois Franchise Disclosure Act. Specifically, any provision in the franchise agreement that designates jurisdiction and venue in a forum outside of Illinois is void, meaning Illinois franchisees are protected by Illinois law regarding where legal disputes are settled.
However, the addendum clarifies an exception: a Zoomin Groomin franchise agreement may still provide for arbitration to take place outside of Illinois. This means that while lawsuits must be handled within Illinois, alternative dispute resolution methods like arbitration can occur elsewhere, offering Zoomin Groomin some flexibility.
Furthermore, the Illinois Addendum states that any attempt to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void. This ensures that franchisees cannot be forced to give up their rights under Illinois law, reinforcing the protections offered by the state. These stipulations collectively ensure that Illinois law is upheld for Zoomin Groomin franchisees within the state, while allowing for arbitration outside of Illinois.