Does the Illinois FDD Amendment supplement Exhibit K
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
Amendments to the Bang Cookies Franchise Disclosure Document
Exhibit K "FDD Receipts," is supplemented with the addition of the following:
The Receipt for this Disclosure Document (Exhibit "K") is supplemented to add the following:
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- THIS FRANCHISE WILL BE/HAVE BEEN FILED UNDER THE FRANCHISE INVESTMENT LAW OF THE STATE OF HAWAII. FILING DOES NOT CONSTITUTE APPROVAL, RECOMMENDATION OR ENDORSEMENT BY THE DIRECTOR OF COMMERCE AND CONSUMER AFFAIRS OR A FINDING BY THE DIRECTOR OF COMMERCE AND CONSUMER AFFAIRS THAT THE INFORMATION PROVIDED HEREIN IS TRUE, COMPLETE AND NOT MISLEADING.
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- THE FRANCHISE INVESTMENT LAW MAKES IT UNLAWFUL TO OFFER OR SELL ANY FRANCHISE IN THIS STATE WITHOUT FIRST PROVIDING TO THE PROSPECTIVE FRANCHISEE, OR SUBFRANCHISOR, AT LEAST SEVEN DAYS BEFORE THE EXECUTION BY THE PROSPECTIVE FRANCHISEE, OF ANY BINDING FRANCHISE OR OTHER AGREEMENT, OR AT LEAST SEVEN DAYS BEFORE THE PAYMENT OF ANY CONSIDERATION BY THE FRANCHISEE, OR SUBFRANCHISOR, WHICHEVER OCCURS FIRST, A COPY OF THE DISCLOSURE DOCUMENT, TOGETHER WITH A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE.
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- THIS DISCLOSURE DOCUMENT CONTAINS A SUMMARY ONLY OF CERTAIN MATERIAL PROVISIONS OF THE FRANCHISE AGREEMENT AND THE CONTRACT OR AGREEMENT SHOULD BE REFERRED TO FOR A STATEMENT OF ALL RIGHTS, CONDITIONS, RESTRICTIONS AND OBLIGATIONS OF BOTH THE FRANCHISOR AND THE FRANCHISEE.
Illinois FDD Amendment
Amendments to the Bang Cookies Franchise Disclosure Document
DISCLOSURE REQUIRED BY THE STATE OF ILLINOIS
Illinois law governs the Franchise Agreement.
In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a Franchise Agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, a Franchise Agreement may provide for arbitration to take place outside of Illinois.
Your rights upon Termination and Non-Renewal are set forth in Sections 19 and 20 of the Illinois Franchise Disclosure Act.
In conformance with Section 41 of the Illinois Franchise Disclosure Act, 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's 2024 Franchise Disclosure Document, the Hawaii FDD Amendment supplements Exhibit K, "FDD Receipts," with additional information. The Illinois FDD Amendment does not state that it supplements Exhibit K. Instead, the Illinois FDD Amendment includes disclosures required by the state of Illinois, specifying that Illinois law governs the Franchise Agreement. It also states that any provision designating jurisdiction and venue outside of Illinois is void, although arbitration may occur outside of the state. Additionally, it confirms that franchisees cannot waive compliance with the Illinois Franchise Disclosure Act.
For a prospective Bang Cookies franchisee in Hawaii, this means they should pay close attention to the receipts and disclosures outlined in Exhibit K, ensuring they understand their rights and obligations under Hawaii's franchise laws. They should also be aware of the specific disclosures related to filing requirements and the prospective franchisee's rights to review the disclosure documents and agreements before making any payments or signing any agreements.
For a prospective Bang Cookies franchisee in Illinois, the amendment clarifies their rights under Illinois law, particularly regarding jurisdiction, venue, and compliance with the Illinois Franchise Disclosure Act. This ensures that franchisees are protected by Illinois law and cannot be forced to waive their rights or litigate outside of Illinois, although arbitration outside of Illinois is permitted. The amendment also emphasizes that no statement or acknowledgement signed by the franchisee can waive claims under state franchise law or disclaim reliance on the franchisor.
Given that the Illinois FDD Amendment does not explicitly supplement Exhibit K, a prospective franchisee should confirm with Bang Cookies whether there are any additional receipts or disclosures that need to be considered in conjunction with the standard FDD receipts. Understanding all applicable state-specific amendments is crucial for making an informed investment decision.