Regarding jurisdiction and venue for Bambu franchise agreements, what is prohibited by Illinois law?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
any document executed in connection with the franchise.
ILLINOIS RIDER TO FRANCHISE AGREEMENT
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- Illinois law governs the Franchise Agreement.
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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, a franchise agreement may provide for arbitration to take place outside of Illinois.
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- Franchisees' rights upon termination and non-renewal are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act.
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Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Illinois law prohibits any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of Illinois. This is in accordance with Section 4 of the Illinois Franchise Disclosure Act. This means that if a Bambu franchisee in Illinois has a legal dispute with the company that is to be handled in court, the case must be heard within the state of Illinois.
However, the FDD specifies an exception to this rule: the franchise agreement may still provide for arbitration to take place outside of Illinois. So, while Bambu cannot force an Illinois franchisee into an out-of-state court, they can require arbitration to occur elsewhere. Arbitration is a form of dispute resolution where a neutral third party hears both sides and makes a decision, which can be binding.
Additionally, Section 41 of the Illinois Franchise Disclosure Act prohibits any condition, stipulation, or provision that would bind a person acquiring a franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois. This ensures that franchisees cannot unknowingly or unwillingly give up their rights under Illinois law.