What agreements are included in the 'First Capital Agreements' for Aunt Millies Bakeries franchisees in Illinois?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
All Agreements between Distributor and First Capital Acceptance Corp. ("First Capital"), including the Promissory Note, Disbursement Authorization, Financing Security Agreement, and Assignment of Receivables (collectively "First Capital Agreements") attached as Exhibit B to the Franchise Disclosure Document, are amended as follows:
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- Illinois law governs the First Capital Agreements.
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- Franchisees' rights upon Termination and Non-Renewal are set forth in sections 19 and 20 of the Illinois Disclosure Act.
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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, arbitration may take place outside of Illinois.
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- 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 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, the 'First Capital Agreements' applicable to Illinois franchisees encompass several financial documents. These include the Promissory Note, Disbursement Authorization, Financing Security Agreement, and Assignment of Receivables. These agreements are between the distributor (franchisee) and First Capital Acceptance Corp.
The FDD also specifies that Illinois law governs these First Capital Agreements, which means any disputes or interpretations of the agreements will be subject to Illinois legal standards. Furthermore, the addendum clarifies franchisees' rights upon termination and non-renewal, referencing sections 19 and 20 of the Illinois Disclosure Act. This ensures that franchisees are aware of their protections under Illinois law regarding the termination or non-renewal of their franchise agreement.
The document also emphasizes that any provision designating jurisdiction and venue outside of Illinois is void, in accordance with Section 4 of the Illinois Franchise Disclosure Act. However, it clarifies that arbitration may still take place outside of Illinois. Additionally, Section 41 of the Illinois Franchise Disclosure Act states that any condition requiring a franchisee to waive compliance with Illinois franchise law is void. These stipulations protect the franchisee by ensuring adherence to Illinois law and preventing the imposition of unfair conditions.