factual

For Brueggers Bagels franchises in Illinois, is a provision binding a person to waive compliance with the Illinois Franchise Disclosure Act valid?

Brueggers_Bagels Franchise · 2025 FDD

Answer from 2025 FDD Document

  1. 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 61–335)

What This Means (2025 FDD)

According to Brueggers Bagels's 2025 Franchise Disclosure Document, any condition that requires a person acquiring a Brueggers Bagels franchise in Illinois to waive compliance with the Illinois Franchise Disclosure Act is void. This protection is explicitly stated within Item 23, Receipts, of the FDD. This means that franchisees cannot be forced to surrender their rights under Illinois franchise law.

To further protect franchisees in Illinois, Brueggers Bagels includes an Illinois Addendum to the Franchise Agreement. This addendum modifies specific sections of the standard License Agreement to ensure compliance with the Illinois Franchise Disclosure Act. For example, the addendum clarifies that Illinois law governs the agreement, and any provision designating jurisdiction and venue outside of Illinois is void, although arbitration may occur outside of the state. The addendum also ensures that franchisees' rights regarding termination, renewal, and the statute of limitations for claims under the Act are protected.

Additionally, the Illinois Addendum to the Development Agreement contains similar protections. It states that no statement, questionnaire, or acknowledgement signed by a franchisee can waive claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on behalf of Brueggers Bagels. This provision supersedes any other conflicting term in any document related to the franchise agreement. These measures collectively reinforce the franchisee's rights and ensure that the franchise agreement adheres to Illinois law, providing a more secure and predictable business environment for Brueggers Bagels franchisees in Illinois.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.