For Bambu franchises, what is the geographic radius to which Section 4 of the franchise agreement applies?

Based on the 2025 Bambu Franchise Disclosure Document, Section 4 of the franchise agreement is referenced within the context of the Illinois Rider. According to the Illinois Rider, any provision in a Bambu franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void, as stated in conformance with Section 4 of the Illinois Franchise Disclosure Act. However, the franchise agreement may still allow for arbitration to occur outside of Illinois. This means that while Bambu can include a clause requiring disputes to be resolved in a specific location, if that location is not within Illinois, the clause is unenforceable under Illinois law.

For a prospective Bambu franchisee in Illinois, this is a beneficial protection. It ensures that they cannot be forced to travel to another state to resolve legal disputes with the franchisor. This levels the playing field, making it more practical and affordable for franchisees to pursue legal action if necessary. It is important to note that this protection specifically applies to jurisdiction and venue, not to arbitration, which may still occur outside of Illinois.

In contrast, for Indiana Bambu franchisees, the FDD excerpt indicates that the scope of the Post-Termination Covenant Not to Compete in Section 21.2 is limited to the 10 mile radius of the Franchisee's former Franchised Location. This means that after the franchise agreement ends, the franchisee is restricted from operating a similar business within a 10-mile radius of their former Bambu location. This is a common practice in franchising to protect the franchisor's brand and customer base. The FDD does not specify a geographic radius for Section 4 in Indiana.