Does the Illinois Rider affect the arbitration clause in the Bombs Away Franchise Agreement?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
disclaiming reliance on ay 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. 2. Effective Date. This Rider is effective as of the Effective Date. Agreed to by: BOMBS AWAY FRANCHISING, LLC
ILLINOIS RIDER TO FRANCHISE AGREEMENT
("Bombs Away Franchising") and ("Franchisee"). This Rider amends the Franchise Agreement dated (the "Agreement"), between Bombs Away Franchising, LLC, a Wyoming Limited Liability Company , a 1. Capitalized terms used but not defined in this Rider have the meanings given Definitions. in the Agreement. The "Illinois Act" means the Illinois Franchise Disclosure Act of 1987. 2. Agreement provides will be resolved by arbitration. Governing Law and Jurisdiction. Notwithstanding any provision of the Agreement to the contrary, the Agreement is governed by Illinois law. The parties irrevocably submit to the jurisdiction and venue of the federal and state courts in Illinois, except for matters which the 3. the violation upon which it is based, the expiration of 1 year after Franchisee become notice disclosing the violation, whichever shall first expire. Limitation of Claims. No action can be maintained to enforce any liability created by the Illinois Act unless brought before the expiration of 3 years from the act or transaction constituting aware of facts or circumstances reasonably indicating that Franchisee may have a claim for relief in respect to conduct governed by the Illinois Act, or 90 days after delivery to the Franchisee of a written 4. Waivers Void. Notwithstanding any provision of the Agreement to the contrary, any condition, stipulation, or provision purporting to bind Franchisee to waive compliance with any provision of the Illinois Act or any other law of the State of Illinois is void. This Section shall not prevent Franchisee from e
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to the 2024 Bombs Away Franchise Disclosure Document, the Illinois Rider does affect the arbitration clause within the Franchise Agreement. Specifically, the rider stipulates that, notwithstanding any provision in the agreement to the contrary, the agreement is governed by Illinois law. It also states that the parties involved irrevocably submit to the jurisdiction and venue of federal and state courts in Illinois, except for matters which the agreement provides will be resolved by arbitration. This means that while arbitration is still a method for resolving disputes, Illinois law takes precedence, and Illinois courts have jurisdiction except for those specific matters designated for arbitration within the original agreement.
This has significant implications for a Bombs Away franchisee in Illinois. It means that certain aspects of the franchise agreement will be interpreted and enforced under Illinois law, potentially offering different protections or requirements than if another state's laws were applied. The franchisee has the right to have disputes heard in Illinois courts, which could be more convenient and cost-effective than traveling to another jurisdiction. However, it's important to note that matters specifically designated for arbitration will still be subject to that process, as outlined in the agreement.
Furthermore, the Illinois Rider includes a limitation on claims, specifying that no action can be maintained to enforce any liability created by the Illinois Act unless brought within a certain timeframe. This timeframe is the expiration of 3 years from the act or transaction constituting the violation, one year after the franchisee becomes aware of facts indicating a potential claim, or 90 days after delivery of a written notice disclosing the violation, whichever expires first. This limitation of claims is an important consideration for franchisees, as it sets a deadline for pursuing legal action related to the Illinois Franchise Disclosure Act.
Finally, the rider explicitly states that any condition, stipulation, or provision purporting to bind the franchisee to waive compliance with any provision of the Illinois Act or any other law of the State of Illinois is void. This protects the franchisee from unknowingly waiving their rights under Illinois law. However, the rider clarifies that this does not prevent the franchisee from entering into a settlement agreement or executing a general release regarding a potential or actual lawsuit, nor does it prevent the arbitration of any claim pursuant to the provisions of Title 9 of the United States Code.