Which state's laws govern the Beyond Juicery Eatery Franchise Agreement, and are there any exceptions?
Beyond_Juicery_Eatery Franchise · 2025 FDDAnswer from 2025 FDD Document
ILLINOIS LAW MODIFICATIONS
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- Payment of Initial Franchise/Development Fees will be deferred until Franchisor has met its initial obligations to franchisee, and franchisee has commenced doing business. This financial assurance requirement was imposed by the Office of the Illinois Attorney General due to Franchisor's financial condition.
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- Illinois law governs the Franchise Agreement and Area Development Agreement.
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- 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.
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- Your rights upon Termination and Non-Renewal of an agreement are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act.
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- In conformance with section 41 of the Illinois Franchise Disclosure Act, any condition, stipulation or provision purporting to bind any
Source: Item 23 — RECEIPTS (FDD pages 60–337)
What This Means (2025 FDD)
According to the 2025 Beyond Juicery Eatery Franchise Disclosure Document, the specific state laws governing the Franchise Agreement can vary and are subject to certain modifications and exceptions depending on the franchisee's location. For franchisees in Illinois, Illinois law governs the Franchise Agreement and Area Development Agreement. However, for franchisees in other states, the franchise agreement may require application of the laws of a state other than where the franchisee is located; this provision might not be enforceable under California law.
For franchisees in California, several provisions of the Franchise Agreement are amended to comply with California law. These include aspects related to termination, non-renewal, bankruptcy, non-compete clauses, litigation venues, and the application of laws from a state other than California. Similarly, for franchisees in Indiana, New York, Maryland, and Washington, the FDD includes addenda that modify specific sections of the Franchise Agreement to align with those states' franchise laws. These modifications address issues such as releases of claims, termination conditions, indemnification, litigation venues, and rights upon termination or non-renewal.
These addenda and modifications suggest that while the Beyond Juicery Eatery Franchise Agreement is likely based on a standard template, its application is tailored to comply with the franchise laws of specific states. Prospective franchisees should carefully review the addendum applicable to their state and consult with legal counsel to understand how their local laws affect the terms of their Franchise Agreement. This is particularly important because certain provisions of the standard agreement may not be enforceable or may be superseded by state-specific regulations.