factual

What specific sections of the Beehive Homes Franchise Agreement are modified for Illinois franchises regarding choice of law and forum?

Beehive_Homes Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. Sections 18.1 & 18.2 of the Franchise Agreement are modified as follows: Choice of Law and Choice of Forum shall be Illinois. Illinois law governs the Franchise Agreement.
    1. 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.

Source: Item 23 — RECEIPTS (FDD pages 34–123)

What This Means (2025 FDD)

According to Beehive Homes' 2025 Franchise Disclosure Document, for franchises located in Illinois, there are specific modifications to the Franchise Agreement concerning choice of law and forum. Specifically, Section 18.1 and 18.2 of the Franchise Agreement are modified to stipulate that Illinois law governs the agreement and that Illinois will be the choice of forum. This means that any legal disputes arising from the franchise agreement will be subject to Illinois law and will be resolved in Illinois courts.

This modification is significant for prospective Beehive Homes franchisees in Illinois because it ensures that they will not be required to litigate disputes in a potentially distant or inconvenient jurisdiction. It also means that Illinois franchise laws, which are designed to protect franchisees, will apply.

The FDD also states that any provision in the franchise agreement that designates jurisdiction and venue outside of Illinois is void, as per Section 4 of the Illinois Franchise Disclosure Act. However, the agreement can still provide for arbitration to occur outside of Illinois. This allows for alternative dispute resolution methods while still maintaining some flexibility for Beehive Homes. Franchisees should consult with a legal professional to fully understand the implications of these modifications.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.