If a Bang Cookies franchisee executes a Development Agreement, which article in that agreement is amended regarding governing law?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
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
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, if a franchisee in Illinois signs both the Franchise Agreement and a Multi-Unit Development Agreement, Article 7.5 of the Development Agreement, which is under the heading "Governing Law", will be amended. This amendment adds a statement specifying that Illinois law governs the agreements between the parties.
This amendment is made in recognition of the Illinois Franchise Disclosure Act. It also clarifies that any provision designating jurisdiction or venue outside of Illinois is void, although the agreement may still provide for arbitration outside of Illinois. The amendment 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, and that any attempt to waive compliance with the Illinois Franchise Disclosure Act is void.
For franchisees in Maryland, if they execute 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," will be amended. The amendment adds a statement that a franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
For franchisees in New York, if they execute a Development Agreement, Article 7 of the Development Agreement, under the heading "Enforcement and Construction," will be supplemented by the addition of a new subarticle 7.24.