For Big Apple Bagels franchises in Illinois, what law governs the franchise agreement?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
This Addendum is to a BAGELS Franchise Agreement dated , 20 between BAB Systems, Inc. and (Franchisee) to amend said Agreement to add the following: Illinois law governs the BAGELS Franchise 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 the 2025 Big Apple Bagels Franchise Disclosure Document, the franchise agreement for the State of Illinois is governed by Illinois law. An addendum to the Bagels Franchise Agreement specifies that Illinois law applies to the agreement. This addendum also states that any provision in the franchise agreement that designates jurisdiction and venue in a forum outside of Illinois is void, although the agreement may provide for arbitration to take place outside of Illinois.
This means that if a Big Apple Bagels franchisee in Illinois has a legal dispute with the franchisor, Illinois courts and Illinois law will generally be used to resolve the issue. This protects the franchisee by ensuring that legal proceedings occur in their home state, under the laws of their state.
Furthermore, the addendum states that any condition, stipulation, or provision that attempts to waive compliance with the Illinois Franchise Disclosure Act is void. This protects the franchisee's rights under Illinois law and ensures that they cannot be forced to give up those rights. Franchisee 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.