How is Article 18.F of the Bang Cookies Franchise Agreement amended regarding governing law?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
- Article 18.F. of the Franchise Agreement, and if Franchisee executes a Development Agreement, Article 7.5 of the Development Agreement, under the heading "Governing Law", shall be amended by the addition of the following statement added after the end of the last sentence of Article 18.F. of the Franchise Agreement and Article 7.5 of the Development Agreement:
Illinois Addendum: 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 Illinois.
Your rights upon termination and non-renewal of a Franchise Agreement are set forth in Sections 19 and 20 of the Illinois Franchise Disclosure Act.
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
- Article 18.G. of the Franchise Agreement, and if Franchisee executes a Development Agreement, Article 7.6 of the Development Agreement, under the heading "Choice of Law, Non-Binding Mediation, Binding Arbitration, and Consent to Jurisdiction", shall be amended by the addition of the following statement added after the end of the last sentence of Article 18.G. of the Franchise Agreement and Article 7.6 of the Development Agreement:
Illinois Addendum: Illinois law governs the agreements between the parties to this franchise.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to the 2024 Bang Cookies Franchise Disclosure Document, Article 18.F of the Franchise Agreement, which covers "Governing Law," is amended for Illinois franchisees. The amendment adds a statement specifying that Illinois law governs the agreements between the parties. This means that the interpretation and enforcement of the franchise agreement will be subject to Illinois state law. This amendment is made in recognition of the requirements of the Illinois Franchise Disclosure Act.
Additionally, the Illinois Addendum clarifies that any provision in the Franchise Agreement designating jurisdiction or venue outside of Illinois is void, although the agreement may still provide for arbitration in a venue outside Illinois. It also states that the franchisee's rights upon termination and non-renewal are protected by Sections 19 and 20 of the Illinois Franchise Disclosure Act. Furthermore, any attempt to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void according to Section 41 of the Act.
For North Dakota franchisees, Article 18 of the Franchise Agreement is amended to state that North Dakota law shall apply. Additionally, covenants requiring North Dakota franchisees to consent to the jurisdiction of courts outside of North Dakota may not be enforceable in North Dakota. These stipulations ensure that Bang Cookies franchisees operating in Illinois and North Dakota receive the protections and rights mandated by their respective state laws, regardless of what the standard franchise agreement might otherwise dictate. This is a common practice among franchisors to ensure compliance with varying state franchise laws.
It is important for prospective Bang Cookies franchisees to understand how these state-specific amendments affect their rights and obligations under the Franchise Agreement. Franchisees should consult with legal counsel to fully understand the implications of these amendments in their specific state.