factual

Besides the Indiana Franchise Disclosure Law or the Indiana Deceptive Franchise Practices Law, what state's laws govern the Bambu franchise agreement?

Bambu Franchise · 2025 FDD

Answer from 2025 FDD Document

ILLINOIS RIDER TO FRANCHISE AGREEMENT

    1. Illinois law governs the Franchise Agreement.
    1. 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.
    1. Franchisees' rights upon termination and non-renewal are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act.
    1. 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.

  1. The following language is added at the end of Section 4.1:

All initial fees payable to Bambu and any of its affiliates shall be deferred until Bambu has fulfilled all of its initial obligations to Franchisee and Franchisee has commenced doing business pursuant to this Agreement. The Illinois Attorney General's Office imposed this deferral requirement due to Bambu's financial condition.

    1. 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.
    1. See the FIRST page of this Attachment IV for your signature.

Source: Item 23 — Receipts (FDD pages 52–209)

What This Means (2025 FDD)

According to Bambu's 2025 Franchise Disclosure Document, the laws of Illinois govern the franchise agreement. The Illinois Rider to the Franchise Agreement states that Illinois law governs the Franchise Agreement. Additionally, any provision in the franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void, although arbitration may take place outside of Illinois. Franchisees' rights upon termination and non-renewal are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act.

Furthermore, any condition, stipulation, or provision requiring a franchisee to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void. All initial fees payable to Bambu and its affiliates are deferred until Bambu has fulfilled its initial obligations and the franchisee has commenced business. This deferral was imposed by the Illinois Attorney General's Office due to Bambu's financial condition.

No statement signed by a franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Bambu or its representatives. This provision supersedes any other term in any document related to the franchise. These stipulations are outlined in the Illinois Rider to Franchise Agreement, indicating the specific legal protections and requirements applicable to Bambu franchisees in Illinois.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.