What law governs the agreements between the parties to the Buff City Soap franchise in Illinois?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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.
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.
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.
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)
According to the 2025 Buff City Soap Franchise Disclosure Document, the agreements between Buff City Soap and its franchisees in Illinois are governed by Illinois law. This is specified in an addendum to the franchise agreement that is applicable when the offering or sales activity relating to the franchise agreement occurred in Illinois, or if the franchisee is domiciled in Illinois.
Furthermore, the addendum states that any provision in the franchise agreement that designates jurisdiction or venue outside of Illinois is void, as per Section 4 of the Illinois Franchise Disclosure Act. However, the franchise agreement may still provide for arbitration outside of Illinois. This ensures that Illinois franchisees have the benefit of Illinois law and legal procedures, while still allowing for the possibility of resolving disputes through arbitration.
Additionally, Section 41 of the Illinois Franchise Disclosure Act stipulates that any condition, stipulation, or provision that attempts to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void. The FDD also states that the franchisee's rights upon termination and non-renewal of a franchise agreement are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act. These protections are designed to safeguard the interests of franchisees operating in Illinois.