What must the undersigned acknowledge and agree to in the addendum to the First Capital Agreements for Aunt Millies Bakeries?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
In witness whereof, each of the undersigned hereby acknowledges having read this Addendum, understands and consents to be bound by all of its terms, and agrees it shall become effective the day of , 20 First Capital Acceptance Corp. Distributor: An Indiana corporation By: Title: By: Title:
Exhibit M ADDENDUM
To the Agreements with Distribution Services of America, Inc. FOR THE STATE OF ILLINOIS
All Agreements between Distributor and Distribution Services of America, Inc. ("DSA"), including the Promissory Note, Financing Security Agreement, and Loan Proceeds Distribution Authorization (collectively "DSA Agreements") attached as Exhibit J to the Franchise Disclosure Document, are amended as follows:
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- Illinois law governs the DSA Agreement.
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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.
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- There is no formal training program and no Operations Manual for this franchise.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, Exhibit M contains an addendum to the agreements with First Capital Acceptance Corp. For the state of Illinois, the distributor must acknowledge having read the addendum, understand and consent to be bound by all of its terms, and agree that it shall become effective on a specified date in 20__. This addendum modifies all agreements between the distributor and First Capital, including the Promissory Note, Disbursement Authorization, Financing Security Agreement, and Assignment of Receivables, collectively referred to as the "First Capital Agreements," which are attached as Exhibit B to the Franchise Disclosure Document.
The addendum also stipulates that Illinois law governs the First Capital Agreements. It further clarifies franchisees' rights upon termination and non-renewal, which are detailed in sections 19 and 20 of the Illinois Disclosure Act. Additionally, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of Illinois is void, although arbitration may take place outside of the state.
Moreover, the addendum states that any condition, stipulation, or provision that attempts to bind a person acquiring a franchise to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void. This ensures that franchisees retain their rights and protections under Illinois law, regardless of any conflicting terms in the franchise agreement. This addendum aims to protect the franchisee by ensuring compliance with Illinois law and providing clarity on the terms and conditions of the agreements with First Capital Acceptance Corp.