What law governs the franchise agreements between parties to a Bambu franchise in Illinois?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
ADDENDUM TO THE BAMBU FRANCHISING LLC DISCLOSURE DOCUMENT FOR THE STATE OF ILLINOIS
Illinois law governs the agreements between the parties to this franchise.
Section 4 of the Illinois Franchise Disclosure Act provides that any provision in a franchise agreement that designates jurisdiction or venue outside the State of Illinois is void. However, a franchise agreement may provide for arbitration in a venue outside of Illinois.
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.
Franchisees' rights upon termination and non-renewal are set forth in Sections 19 and 20 of the Illinois Franchise Disclosure Act.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the franchise agreements between parties to a Bambu franchise in Illinois are governed by Illinois law. This is explicitly stated in the Illinois Rider to Franchise Agreement. This means that the interpretation and enforcement of the franchise agreement will be subject to the laws of Illinois.
Furthermore, the FDD specifies that any provision within the franchise agreement that designates jurisdiction and venue outside of Illinois is considered void, according to Section 4 of the Illinois Franchise Disclosure Act. However, the agreement can still allow for arbitration to occur outside of Illinois. This is a notable exception, as it allows for disputes to be resolved through arbitration in a different location, even though Illinois law governs the agreement itself.
Additionally, the FDD highlights that franchisees' rights upon termination and non-renewal are protected under Sections 19 and 20 of the Illinois Franchise Disclosure Act. It also states that any attempt to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void, as per Section 41 of the Act. This ensures that franchisees cannot be forced to relinquish their legal protections under Illinois law.
Finally, the document includes an addendum specifically for Illinois, reinforcing that Illinois law governs the agreements. It reiterates the provisions regarding jurisdiction, venue, arbitration, and the protection of franchisees' rights under the Illinois Franchise Disclosure Act. This comprehensive approach ensures that franchisees operating in Illinois are aware of their rights and the legal framework governing their franchise agreements.