What are some examples of modifications the Bang Cookies Franchisor can make to Article 6?
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)
According to Bang Cookies' 2024 Franchise Disclosure Document, Article 6 of the franchise agreement, which pertains to restrictive covenants and obligations, can be modified based on specific state laws. For example, the Illinois Franchise Disclosure Act necessitates modifications to Article 18.F regarding governing law and Article 18.G concerning choice of law, mediation, arbitration, and jurisdiction. These modifications ensure that Illinois law governs the agreements and that franchisees can pursue claims in Illinois, aligning with the state's franchise regulations.
Similarly, the Maryland Franchise Registration and Disclosure Law requires amendments to Article 14.C regarding transfer conditions and Article 15.B concerning renewal conditions. These amendments ensure that franchisees retain all rights and causes of action under Maryland franchise law. Additionally, Article 18.G, related to choice of law and dispute resolution, and Article 18.I, addressing claim limitations, are modified to allow franchisees to bring lawsuits in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
The Hawaii Franchise Investment Law also prompts modifications to Sub-Article 14.C.(6) on transfer conditions and Sub-Article 15.B.(8) on renewal conditions. These changes ensure that franchisees retain their rights and causes of action under Hawaii franchise law, with the Hawaii Franchise Investment Law taking precedence if any inconsistencies arise. These state-specific amendments reflect Bang Cookies' effort to comply with various state franchise laws, ensuring franchisees' rights are protected and aligned with local regulations.