In Illinois, does the law governing Big Apple Bagels Franchise Agreements allow for any exceptions?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
Illinois law governs the BAGELS Franchise Agreements.
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 is void. However, a BAGELS Franchise Agreement may provide for arbitration to take place outside of Illinois.
Franchisee's rights upon termination and non-renewal are set forth in Sections 19 and 20 of the Illinois Franchise Disclosure Act.
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 Illinois Franchise Disclosure Act or any other law of Illinois is void.
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, Illinois law governs the Bagels Franchise Agreements, but there are exceptions to this rule. Specifically, any provision in the Franchise Agreement that designates jurisdiction and venue in a forum outside of Illinois is void, meaning it cannot be enforced. However, the agreement can stipulate that arbitration may occur outside of Illinois, providing a carve-out to the general rule.
Furthermore, the FDD states that franchisees' rights upon termination and non-renewal are protected under Sections 19 and 20 of the Illinois Franchise Disclosure Act. This means that these statutory rights cannot be overridden by the franchise agreement. Additionally, any condition, stipulation, or provision that attempts to make a franchisee waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void, reinforcing the protection of franchisees under Illinois law.
In practical terms, this means that while Illinois law generally applies to Big Apple Bagels Franchise Agreements within the state, certain provisions, particularly those related to out-of-state jurisdiction, venue, and waivers of rights, are unenforceable. Prospective franchisees should be aware of these protections and ensure that the Franchise Agreement complies with Illinois law. They should also consult with legal counsel to fully understand their rights and obligations under Illinois franchise law.