Under what state's laws will the Beggars Pizza Franchise Agreement be interpreted and construed?
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 Beggars Pizza's 2025 Franchise Disclosure Document, the Franchise Agreement will generally be interpreted and construed under the laws of Illinois. This means that Illinois state law will govern the agreement's terms and how they are understood.
However, there is an exception: if a Beggars Pizza franchisee is located outside of Illinois, and a specific provision of the agreement would not be enforceable under Illinois law but would be enforceable under the laws of the state where the franchisee is located, then the laws of the franchisee's state will apply to that specific provision. This ensures that franchisees are not subject to unenforceable terms based on where they are located.
Any legal action brought by a franchisee against Beggars must be brought in the U.S. District Court for the Northern District of Illinois, or if that court lacks jurisdiction, in a state court located in Cook County, Illinois. Beggars Pizza, however, can commence an action against the franchisee in any court of competent jurisdiction. The franchisee also waives any objections to personal jurisdiction or venue, agreeing that Beggars Pizza can move a case from state to federal court.