In general, where must all actions arising under the Buff City Soap Franchise Agreement be commenced?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
THIS ADDENDUM is made and entered into on, 20 (the "Effective Date") by and between BUFF CITY SOAP FRANCHISING, LLC, a limited liability company formed under the laws of the State of Delaware, with its principal business address at 5294 Beltline Road, Suite 100, Dallas, Texas 75254, ("we," "us,"' or, "our"), and , a [corporation, limited liability company, general partnership, or limited partnership] formed under the laws of the State of, [or a sole proprietorship] with its principal business address at ("you" or "your"). 1.
BACKGROUND.
We and you are parties to that certain Franchise Agreement dated , 20 (the "Franchise Agreement") that has been signed concurrently with the signing of this Addendum.
This Addendum is annexed to and forms part of the Franchise Agreement.
This Addendum is being signed because (a) any of the offering or sales activity relating to the Franchise Agreement occurred in Illinois and the Buff City Soap Makery that you will operate under the Franchise Agreement will be located in Illinois, and/or (b) you are domiciled in Illinois.
Illinois law governs the agreements between the parties to this franchise.
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.
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 specifies that Illinois law governs the agreements between the parties. However, any provision in the franchise agreement that designates jurisdiction or venue outside the State of Illinois is void. This means that while the agreement itself is interpreted under Illinois law, franchisees are not obligated to litigate or resolve disputes outside of Illinois, providing a legal protection for franchisees operating within the state.
This stipulation is particularly relevant for prospective Buff City Soap franchisees in Illinois, as it ensures that they will not be forced to travel to another state for legal proceedings. It reflects Illinois's commitment to protecting its franchisees by ensuring that legal disputes can be resolved within the state's jurisdiction. This provision helps to level the playing field, preventing franchisors from imposing potentially burdensome or unfair legal requirements on franchisees.
However, the FDD also notes that a franchise agreement may provide for arbitration outside of Illinois. Therefore, prospective franchisees should carefully review the franchise agreement and any addenda to understand the specific dispute resolution process, including whether arbitration is required and where it would take place, as this could impact their legal costs and convenience.