For Brueggers Bagels franchises in Illinois, is a provision designating jurisdiction and venue outside of Illinois valid?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
Agreement(s).
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 acknowledgement 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 behalf of the Franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
ILLINOIS ADDENDUM TO THE FRANCHISE AGREEMENT
In recognition of the Illinois Franchise Disclosure Act of 1987 (the "Act"), Illinois Compiled Statutes, Chapter 815, Sections 705/1 to 705/44, the parties agree to modify the Franchise Agreement as follows:
- Term and Successor Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 61–335)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, specifically the Illinois Addendum, any provision in the franchise agreement that designates jurisdiction and venue in a forum outside of Illinois is void. This is in direct conformance with Section 4 of the Illinois Franchise Disclosure Act. This means that if a Brueggers Bagels franchise agreement attempts to force a franchisee in Illinois to resolve disputes in another state, that provision is not enforceable under Illinois law.
However, the FDD clarifies an important exception: the franchise agreement may still provide for arbitration to take place outside of Illinois. So while Brueggers Bagels cannot require a franchisee to litigate a case in another state, they can require the franchisee to participate in arbitration out of state. Arbitration is a form of alternative dispute resolution that is often faster and less expensive than going to court.
This protection is further reinforced by the Illinois Franchise Disclosure Act, which states that any condition, stipulation, or provision that attempts to bind a franchisee to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void. This ensures that Brueggers Bagels franchisees in Illinois retain their rights and protections under Illinois law, regardless of what the franchise agreement might otherwise state. This also means that any statement, questionnaire, or acknowledgement signed by a franchisee cannot waive claims under Illinois franchise law, including claims of fraud.