What courts do Buff City Soap and the franchisee irrevocably consent to the jurisdiction of?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
greements between the parties to this franchise.
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- Section 4 of the Illinois Franchise Disclosure 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.
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- Item 5 is amended to state that payment of Initial Franchise/Development Fees will be deferred until Franchisor has met its initial obligations to franchisee, and franchisee has commenced doing business. This financial assurance requirements was imposed by the Office of the Illinois Attorney General due to Franchisor's financial condition.
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- Section 41 of the Illinois Franchise Disclosure Act provides that 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.
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- Your rights upon termination and non-renewal of a franchise agreement are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act.
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- 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.
[Signatures on Following Page] IN WITNESS WHEREOF, the parties have executed and delivered this Addendum on the dates noted below, to be effective as of the Effective Date.
Source: Item 6 — , Securities Offering Fee, in the amount column is revised to state the following: (FDD pages 216–303)
What This Means (2025 FDD)
Based on the 2025 Buff City Soap Franchise Disclosure Document, the franchise agreement's jurisdiction and venue are subject to certain state laws, particularly in Illinois, Maryland, South Dakota, and Washington.
For Illinois franchisees, the FDD states that any provision in the franchise agreement that designates jurisdiction or venue outside the State of Illinois is void, according to the Illinois Franchise Disclosure Act. However, the agreement may allow for arbitration outside of Illinois. This means an Illinois franchisee cannot be forced to litigate disputes in a non-Illinois court, but arbitration outside the state is a possibility.
For Maryland, the addendum states that if any terms of the disclosure document are inconsistent with Maryland Franchise Registration and Disclosure Law, the terms of the addendum control. Additionally, any representations requiring prospective franchisees to assent to a release, estoppel, or waiver of liability do not act as a release, estoppel, or waiver of liability incurred under the Maryland Franchise Registration and Disclosure Law.
For franchisees in Washington, the FDD indicates that no statement, questionnaire, or acknowledgement signed by a franchisee can waive claims under Washington's franchise law or disclaim reliance on statements made by Buff City Soap. This provision supersedes any other conflicting terms in the franchise agreement. Similarly, for South Dakota, no statement, questionnaire, or acknowledgement signed by a franchisee can waive any claims under any applicable state franchise law, including fraud in the inducement, or disclaiming reliance on behalf of the Franchisor.