Who is required to sign the Illinois addendum to the Black Bear Diner Area Development Agreement?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
FOR THE STATE OF ILLINOIS
This Addendum to the Area Development Agreement is agreed to this day of , 20, between BBDI LLC and to amend and revise said Area Development Agreement as follows: In recognition of the requirements of the Illinois Franchise Disclosure Act of 1987, 815 ILCS 705/1 et seq., the Area Development Agreement for BBDI LLC shall be amended as follows:
In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
Your 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.
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
[signature page follows]
IN WITNESS WHEREOF, each of the undersigned hereby acknowledges having read this Addendum, understands and consents to be bound by all of its terms.
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, the Illinois addendum to the Area Development Agreement must be signed by both BBDI LLC and the developer. The addendum states that both parties acknowledge having read the addendum, understand it, and consent to be bound by its terms.
This addendum is required in Illinois due to the Illinois Franchise Disclosure Act of 1987. It amends and revises the Area Development Agreement to comply with Illinois law. The addendum specifically addresses issues such as venue for disputes, rights upon termination and non-renewal, and waivers of compliance with the Illinois Franchise Disclosure Act.
For a prospective Black Bear Diner franchisee in Illinois, this means that certain provisions in the standard Area Development Agreement that might conflict with Illinois law are superseded by the addendum. It ensures that the franchisee's rights under Illinois law are protected and cannot be waived. The franchisee should carefully review the addendum with legal counsel to fully understand its implications and how it modifies the original Area Development Agreement.