Does the Bft Franchise Disclosure Document include state-specific riders to the Multi-Unit Agreement for use in Illinois?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
any such provisions contained in the franchise agreement or elsewhere are void and unenforceable in Washington.
The Franchise Disclosure Document does not waive any liability we may have under the Washington Franchise Investment Protection Act, RCW 19.100, and the rules adopted thereunder.
THE FOLLOWING PAGES IN THIS EXHIBIT ARE STATE-SPECIFIC RIDERS TO THE MULTI-UNIT AGREEMENT
RIDER TO THE BFT FRANCHISE SPV, LLC MULTI-UNIT AGREEMENT FOR USE IN ILLINOIS
THIS RIDER (this "Rider") is made and entered into by and between BFT FRANCHISE SPV,
| Suite 100 Irvine, CA 92614 | ("Franchisor"), and, |
|---|---|
| whose principal business address is | ("Developer"). |
| 1. | are parties to that certain Multi-Unit Agreement |
| Background. Franchisor and Developer | dated |
| , 20 (the "Multi-Unit Agreement") that has been signed concurrently with the signing | |
| of this Rider. This Rider supersedes any inconsistent or conflicting provisions of the Multi-Unit Agreement. | |
| Terms not otherwise defined in this Rider have the meanings as defined in the Multi-Unit Agreement. | This |
| Rider is annexed to and forms part of the Multi-Unit Agreement. This Rider is being signed because (a) | |
| Developer is domiciled in the State of Illinois, or (b) the offer of the franchise is made or accepted in the | |
| State of Illinois and | Multi-Unit Agreement |
| the Studios that Developer develops under the | are or will be |
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- No Disclaimer. No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
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- Waiver of Jury Trial; Class Actions. The following is added to the end of Sections 12.H (Waiver of Jury Trial) and 12.I (Waiver of Class Actions) of the Multi-Unit Agreement:
Nothing contained in this section shall constitute a condition, stipulation, or provision purporting to bind any person to waive compliance with any provision of the Illinois Franchise Disclosure Act or any other law of the State of Illinois, to the extent applicable.
- Limitation of Actions. The following is added to the end of Section 12.K (Limitation of Actions) of the Multi-Unit Agreement:
However, nothing contained in this section shall constitute a condition, stipulation, or provision purporting to bind any person to waive compliance with any provision of the Illinois Franchise Disclosure Act or any other law of the State of Illinois, to the extent applicable.
- Illinois Franchise Disclosure Act. The following language is added to the end of the Multi-Unit Agreement:
Except for the U.S. Federal Arbitration Act and other federal laws in the U.S., the laws of the State of Illinois will govern this Agreement.
Section 4 of the Illinois Franchise Disclosure Act provides that any provision in a multiunit agreement that designates jurisdiction or venue outside the State of Illinois is void. However, a multi-unit agreement may provide for arbitration outside of Illinois.
located in the State of Illinois.
Section 41 of the Illinois Franchise Disclosure Act provides that any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
Developer's rights upon termination and non-renewal of a multi-unit agreement are subject to sections 19 and 20 of the Illinois Franchise Disclosure Act.
[SIGNATURE PAGE TO FOLLOW]
IN WITNESS WHEREOF, the parties have executed and delivered this Rider to be effective as of the effective date of the Multi-Unit Agreement.
BFT FRANCHISE SPV, LLC, a Delaware limited liability company [NAME OF DEVELOPER] Capacity:
RIDER TO THE BFT FRANCHISE SPV, LLC MULTI-UNIT AGREEMENT FOR USE IN MARYLAND
| THIS RIDER (this "Rider") is made and entered into by and between BFT FRANCHISE SPV, |
|---|
| LLC, a Delaware limited liability company with its principal business address at 17877 Von Karman Ave., |
| Suite 100 Irvine, CA 92614 ("Franchisor"), and, |
| whose principal business address is |
| ("Developer"). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, state-specific riders to the Multi-Unit Agreement are included. Specifically, there is a rider for use in Illinois. This suggests that Bft acknowledges and addresses state-specific franchise laws and regulations within the franchise agreement. These riders modify the standard agreement to comply with local legal requirements. This is a common practice in franchising, especially in states with franchise-specific laws.
The inclusion of a state-specific rider for Illinois means that certain provisions of the standard Multi-Unit Agreement are altered or supplemented to align with the Illinois Franchise Disclosure Act. The rider includes stipulations that protect the franchisee's rights under Illinois law, such as preventing the franchisee from waiving compliance with the Illinois Franchise Disclosure Act. Additionally, the rider specifies that Illinois law governs the agreement, except for the U.S. Federal Arbitration Act and other federal laws.
For a prospective Bft franchisee in Illinois, this is beneficial because it provides additional legal protection and clarity. The rider ensures that the franchise agreement adheres to Illinois law, reducing the risk of disputes arising from conflicting terms. It also confirms that the franchisee's rights under the Illinois Franchise Disclosure Act are upheld. The rider addresses dispute resolution, jury trial waivers, class action waivers, and limitation of actions, ensuring compliance with Illinois law.
The Bft FDD also includes additional disclosures for Illinois. These disclosures state that no statement signed by the franchisee can waive claims under Illinois franchise law or disclaim reliance on statements made by Bft. Furthermore, the FDD supplements information regarding dispute resolution by arbitration or mediation and choice of forum to comply with the Illinois Franchise Disclosure Act, which voids any provision designating jurisdiction or venue outside of Illinois, although arbitration outside of Illinois is permitted.