What governing law applies to all matters relating to arbitration 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 governing law for arbitration depends on the state where the franchise is purchased. For franchisees in Illinois, Illinois law governs the agreements between the parties, as stated in the Illinois Addendum. This addendum amends the Franchise Agreement to include this provision, ensuring that Illinois law applies to the franchise agreement.
Specifically, Section 4 of the Illinois Franchise Disclosure Act stipulates that any provision designating jurisdiction or venue outside of Illinois is void. However, the Franchise Agreement can still provide for arbitration in a venue outside Illinois. This means that while Illinois law governs the agreement, arbitration may occur elsewhere, provided it is agreed upon.
For franchisees in Washington, the Washington State Franchise Investment Protection Act, Chapter 19.100 RCW, governs matters relating to arbitration. In any arbitration involving a franchise purchased in Washington, the arbitration site must be in Washington State or a location mutually agreed upon at the time of arbitration or as determined by the arbitrator. In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act prevail.