What do the Franchisor and Franchisee irrevocably consent to regarding jurisdiction or venue for Bang Cookies?
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's 2024 Franchise Disclosure Document, the Illinois Franchise and Development Agreement Amendment addresses jurisdiction and venue. For franchisees in Illinois, any provision in the Franchise Agreement that designates jurisdiction or venue outside of Illinois is void, according to Section 4 of the Illinois Franchise Disclosure Act. However, the agreement may stipulate arbitration in a venue outside Illinois. This amendment ensures compliance with Illinois law, which aims to protect franchisees within the state.
This means that if a Bang Cookies franchisee is based in Illinois and a dispute arises, they cannot be forced to litigate the matter in a court outside of Illinois. This provides a level of protection and convenience for Illinois franchisees, as legal proceedings would occur within their home state. However, it's important to note the exception for arbitration, which could still take place outside of Illinois if the franchise agreement specifies it.
Furthermore, the Illinois amendment states that no statement signed by a franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on the franchisor. This provision supersedes any other conflicting terms in any document related to the franchise agreement, reinforcing the protection afforded to franchisees under Illinois law. Bang Cookies franchisees in Illinois should be aware of these specific protections and how they may impact dispute resolution and legal rights.