What is the governing law for the Big Apple Bagels Development Agreement, as specified in Section 13?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
BAB SYSTEMS, INC. ADDENDUM TO THE BAGELS AREA DEVELOPMENT AGREEMENT
FOR THE STATE OF ILLINOIS
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 day of, 20 In witness whereof, each of the undersigned hereby acknowledges having read this Addendum, understands and consents to be bound by all of its terms, and agrees it shall become effective the Developer: BAB SYSTEMS, INC. Corporate/LLC Signature: an Illinois corporation a corporation/LLC Date Accepted: Date Accepted: Individual Signatures:
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to the 2025 Big Apple Bagels FDD, the governing law for the BAGELS Area Development Agreement is Illinois law, as specified in the addendum for the state of Illinois. This addendum modifies the agreement between BAB Systems, Inc. and the developer. It also states that any provision in a BAGELS Franchise Agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void, in conformance with Section 4 of the Illinois Franchise Disclosure Act. However, the agreement may provide for arbitration to take place outside of Illinois.
This means that if a Big Apple Bagels developer enters into an Area Development Agreement in Illinois, Illinois law will govern the agreement. This ensures that legal disputes related to the agreement will be interpreted and resolved under Illinois law. The addendum also clarifies that franchisees' 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, and that any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act is also void, in conformance with Section 41 of the Act.
For a prospective Big Apple Bagels franchisee in Illinois, this addendum provides additional protection and clarity regarding their rights and obligations under the Area Development Agreement. It ensures that Illinois law will be applied to the agreement and that certain provisions that might conflict with Illinois law are void. This can be beneficial for franchisees as it provides a more predictable and favorable legal environment within the state.
It is important for potential franchisees to carefully review the entire Area Development Agreement and any addenda specific to their state to fully understand their rights and obligations. Consulting with an attorney experienced in franchise law is also recommended to ensure a complete understanding of the legal implications of the agreement.