What Illinois law governs the franchise agreements for Bombs Away?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
ILLINOIS ADDENDUM TO DISCLOSURE DOCUMENT
In recognition of the requirements of the Illinois Franchise Disclosure Act of 1987, as amended (the "Act"), this Disclosure Document is amended as follows:
Illinois law governs the agreements between the parties to this franchise.
Section 4 of the Act provides that any provision in a franchise agreement that designates jurisdiction or venue outside the State of Illinois is void. However, a franchise agreement may provide for arbitration outside of Illinois.
Section 41 of the Act provides that any condition, stipulation, or provision purporting to bind any person acquiring any franchise to waive compliance with the Act or any other law of Illinois is void.
Your rights upon termination and non-renewal of a franchise agreement are set forth in sections 19 and 20 of the Act.
Source: Item 23 — RECEIPTS (FDD pages 36–117)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the Illinois Franchise Disclosure Act of 1987, as amended, governs the agreements between Bombs Away and its franchisees in Illinois. This is explicitly stated within the Illinois Addendum to the Disclosure Document. This addendum acknowledges the requirements of the Act and amends the Disclosure Document accordingly for Illinois franchisees.
Specifically, Section 4 of the Act stipulates that any provision in the franchise agreement that designates jurisdiction or venue outside of Illinois is void. However, the franchise agreement can still include provisions for arbitration outside of Illinois. This means that while Bombs Away can require arbitration to occur out-of-state, franchisees cannot be forced to litigate disputes in a non-Illinois court.
Furthermore, Section 41 of the Act ensures that franchisees cannot waive compliance with the Act or any other Illinois law. Additionally, the FDD states that the rights of franchisees upon termination and non-renewal of a franchise agreement are protected under sections 19 and 20 of the Act. This provides Illinois franchisees with certain statutory rights regarding termination and renewal that cannot be waived or superseded by the franchise agreement.