For Big Apple Bagels franchises in Illinois, what law governs the Area Development Agreement?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
This Addendum is to a BAGELS Area Development Agreement dated , 20 between BAB Systems, Inc. and (Developer) to amend said Agreement to add the following: Illinois law governs the BAGELS Area Development Agreement. is void. outside of Illinois. In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a BAGELS Franchise Agreement that designates jurisdiction and venue in a forum outside of the State of Illinois However, a BAGELS Franchise Agreement may provide for arbitration to take place Illinois Franchise Disclosure Act. Franchisee's rights upon termination and non-renewal are set forth in Sections 19 and 20 of the Illinois Franchise Disclosure Act or any other law of Illinois is void. In conformance with Section 41 of the Illinois Franchise Disclosure Act, any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, for Area Development Agreements in Illinois, Illinois law governs the BAGELS Area Development Agreement. The addendum specifies that any provision designating jurisdiction and venue outside of Illinois is void, in conformance with Section 4 of the Illinois Franchise Disclosure Act. However, the agreement may still allow for arbitration to occur outside of Illinois. The addendum also states that any condition that requires a person acquiring a franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void, in conformance with Section 41 of the Illinois Franchise Disclosure Act.
This means that if a prospective Big Apple Bagels franchisee is developing an area in Illinois, the Area Development Agreement they sign with Big Apple Bagels will be interpreted and enforced under Illinois state law. This provides a level of legal protection and certainty for franchisees operating in Illinois, as it ensures that their agreement adheres to Illinois' specific franchise regulations.
It is important for prospective franchisees to understand that while Illinois law governs the agreement, there may be provisions allowing for arbitration outside of Illinois. Franchisees should carefully review the agreement and addendum with legal counsel to fully understand their rights and obligations under Illinois law.