factual

What law governs the MUD Agreement for a Bambu franchise in Illinois?

Bambu Franchise · 2025 FDD

Answer from 2025 FDD Document

ILLINOIS RIDER TO MUD AGREEMENT

    1. Illinois law governs the MUD 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.

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

What This Means (2025 FDD)

According to Bambu's 2025 Franchise Disclosure Document, for franchisees in Illinois, the MUD (Multi-Unit Development) Agreement is governed by Illinois law. This is specified in the Illinois Rider to the MUD Agreement. This means that the legal framework and interpretation of the MUD Agreement will be based on the laws of the State of Illinois.

This stipulation is important for prospective Bambu franchisees in Illinois because it ensures that their agreement is subject to the protections and regulations provided by Illinois law. It also states that any provision in the franchise agreement that designates jurisdiction and venue outside of Illinois is void, although the agreement may allow for arbitration outside of Illinois. This protects the franchisee from having to resolve disputes in a potentially distant or unfavorable legal environment.

Furthermore, the Illinois Rider to the Franchise Agreement states that franchisees' rights upon termination and non-renewal are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act. Additionally, any condition that requires the franchisee to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void. This reinforces the franchisee's rights and protections under Illinois law, preventing Bambu from circumventing these protections through contractual clauses.

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.