Where will arbitration proceedings be conducted for disputes involving Big Apple Bagels?

According to Big Apple Bagels' 2025 Franchise Disclosure Document, the location of arbitration proceedings depends on the franchisee's location. For franchisees operating in Illinois, any provision in the franchise agreement that designates jurisdiction and venue in a forum outside of Illinois is void. However, the franchise agreement may provide for arbitration to take place in Illinois, in conformance with Section 4 of the Illinois Franchise Disclosure Act. This means that if a Big Apple Bagels franchisee is based in Illinois, arbitration will occur within the state, adhering to Illinois law.

For franchisees outside of Illinois, the FDD does not specify where arbitration would occur. The franchise agreement dictates the terms and conditions, including dispute resolution processes, for franchisees operating outside of Illinois.

Prospective franchisees should carefully review the franchise agreement and any state-specific addenda to understand the specific terms related to arbitration and dispute resolution. It is advisable to seek legal counsel to fully understand the implications of these clauses, especially concerning the location and governing laws for arbitration proceedings. Franchisees should also inquire with the franchisor directly to clarify the arbitration location for franchisees outside of Illinois.