What law governs all matters relating to arbitration for Bang Cookies franchise disputes?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
In recognition of the Washington State Franchise Investment Protection Act, Chapter 19.100 RCW, the following amendments are made to the Franchise Disclosure Document:
- In any arbitration involving a franchise purchased in Washington, the arbitration site shall be either in the State of Washington, or in a place mutually agreed upon at the time of the arbitration or as determined by the arbitrator.
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- In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW shall prevail.
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.
- G. Any provision in the Franchise Agreement requiring that the Franchise Agreement be construed according to the laws of a state other than North Dakota are unfair, unjust or inequitable within the intent of Section 51-19-09 of the North Dakota Franchise Investment Law.
- H. Any provision in the Franchise Agreement which requires a franchisee to waive his or her right to a jury trial has been determined to be unfair, unjust and inequitable within the intent of Section 51-19-09 of the North Dakota Franchise Investment Law.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, the specific laws governing arbitration for franchise disputes depend on the franchisee's location. For franchisees in Illinois, Illinois law governs the agreements between the parties, as stated in the Illinois Franchise Disclosure Act. This act stipulates that any provision designating jurisdiction or venue outside of Illinois is void, although it allows for arbitration in a venue outside the state.
For franchisees in Washington, the Washington State Franchise Investment Protection Act, Chapter 19.100 RCW, dictates that the arbitration site must be in Washington or a mutually agreed-upon location. In case of conflicting laws, the provisions of the Washington Franchise Investment Protection Act prevail.
For franchisees in North Dakota, any provision in the Franchise Agreement requiring construction according to the laws of another state is considered unfair and unjust under Section 51-19-09 of the North Dakota Franchise Investment Law. Similarly, any provision requiring a franchisee to waive their right to a jury trial is also deemed unfair and unjust. These state-specific amendments ensure that local laws and protections are prioritized in franchise disputes, especially concerning arbitration and legal proceedings.