What body handles the binding arbitration for Bang Cookies franchise disputes?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
ILLINOIS FRANCHISE AND DEVELOPMENT AGREEMENT AMENDMENT
Amendments to the Bang Cookies Franchise Agreement
In recognition of the requirements of the Illinois Franchise Disclosure Act, 815 ILCS 705/1 to 705/45, and Ill. Admin. Code tit. 15, §200.100 et seq., the undersigned agree to the following modifications to the Bang Cookies Franchise LLC Franchise Agreement (the "Franchise Agreement") and, if Franchisor and Franchisee both sign the Bang Cookies Franchise LLC Multi-Unit Development Agreement (the "Development Agreement"), as follows:
- 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)
Based on the 2024 Bang Cookies Franchise Disclosure Document, the specific entity or body that handles binding arbitration for franchise disputes is not explicitly named in the provided excerpts. However, the FDD does address arbitration-related matters, particularly concerning attorney fees, the location of arbitration, and adherence to state franchise laws.
Item 23 outlines that if an arbitrator finds the franchisee in breach of the agreement, Bang Cookies is entitled to recover attorney fees and arbitration-related costs. Furthermore, amendments for Washington and Illinois franchisees stipulate that arbitration sites must be within those states or a mutually agreed-upon location, and that state laws govern the agreements. These amendments also address the franchisee's rights and the enforcement of non-compete agreements.
Prospective franchisees should carefully review Item 18.G, 'Choice of Law, Non-Binding Mediation, Binding Arbitration, and Consent to Jurisdiction' in the Franchise Agreement to fully understand the process, rules, and selection of the arbitration body. It is essential to seek clarification from Bang Cookies regarding the specific organization or method used for arbitration to ensure a comprehensive understanding of dispute resolution procedures.