Which jurisdiction's laws govern the Beggars Pizza agreement?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Applicable Law. The Agreement will be interpreted and construed exclusively under the laws of Illinois. If any conflict of law arises, the laws of Illinois will prevail without regard to the application of Illinois conflict-of-law rules. If any provision of the Agreement would not be enforceable under the laws of Illinois, Franchisee is located outside of Illinois, and such provision would be enforceable under the laws of the state in which Franchisee is located, then such provision will be interpreted and construed under the laws of that state.
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- Jurisdiction And Venue. Any action, whether or not arising out of, or relating to, the Agreement, brought by Franchisee (or any principal thereof) against Supplier or Beggars must be brought in the U.S. District Court for the Northern District of Illinois or, if such court lacks subject matter jurisdiction, in a state court located in Cook County, Illinois. Supplier may commence an action against Franchisee in any court of competent jurisdiction. Franchisee hereby waives all objections to personal jurisdiction or venue for purposes of this Section 10 and agrees that nothing in this Section 10 will be deemed to prevent Supplier from removing an action from state court to federal court. Franchisee irrevocably waives any objection that such courts are an inconvenient forum.
Source: Item 23 — RECEIPT (FDD pages 39–192)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, the laws of Illinois govern the agreement. Specifically, the agreement will be interpreted and construed exclusively under Illinois law, and in case of any conflict, Illinois law prevails, disregarding its conflict-of-law rules.
However, there is an exception: if a franchisee is located outside of Illinois and a provision of the agreement is unenforceable under Illinois law but enforceable under the laws of the franchisee's state, then the laws of the franchisee's state will govern that specific provision. This ensures that franchisees are not unduly burdened by Illinois law if their local laws provide a more favorable interpretation.
Furthermore, any legal action initiated by the franchisee against the supplier or Beggars Pizza must be brought in the U.S. District Court for the Northern District of Illinois or a state court in Cook County, Illinois, if the federal court lacks jurisdiction. Beggars Pizza, on the other hand, can commence an action against the franchisee in any court with competent jurisdiction. The franchisee also waives any objections to personal jurisdiction or venue, agreeing that the supplier can remove an action from state court to federal court, and waiving any objection to the courts being an inconvenient forum.