What state law governs the agreements between the parties to the Buff City Soap franchise?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
SING, LLC AREA DEVELOPMENT AGREEMENT FOR USE IN ILLINOIS**
| | 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, liability company, general partnership, or limited partnership] formed under the laws of the State of , [or a sole proprietorship] | with its principal | limited business address at ("you" or | | "your"). | | | | | 1. | BACKGROUND. We and you are parties to that certain Area Development Agreement dated , 20 (the "Area Development Agreement") that has been signed concurrently with the signing of this Addendum. This Addendum of the Development Agreement. This Addendum in Illinois, and/or (b) the Buff City Soap Makery Development Agreement and Franchise Agreement will be located in Illinois. | | is annexed to and forms part is being signed because (a) you are domiciled that you will operate under the Area | | 2. | Illinois law governs the agreements between the parties to this franchise. Item 5 is amended to state that 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. | | payment of Initial Franchise/Development Fees will be deferred | | 3. | 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. | | | | 4. | 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. | | | | 5. | 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. | | | | 6. | No statement, questionnaire or acknowledgement signed or agreed to by a franchisee in | | | [Signatures on Following Page]
term of any document executed in connection with the franchise.
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 IN WITNESS WHEREOF, the parties have executed and delivered this Addendum on the dates noted below, to be effective as of the Effective Date.
BUFF CITY SOAP FRANCHISING, LLC []## ADDENDUM TO THE BUFF CITY SOAP FRANCHISING, LLC FRANCHISE AGREEMENT FOR USE IN MARYLAND
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) the Buff City Soap Makery that you will operate under the Franchise Agreement will be located in Maryland; and/or (b) any of the offering or sales activity relating to the Franchise Agreement occurred in Maryland. 2. RELEASES. The following is added to the Franchise Agreement:
As to franchises governed by the Maryland Franchise Registration and Disclosure Law, if any of the terms of the Disclosure Document are inconsistent with the terms below, the terms below control.
All representations requiring prospective franchisees to assent to a release, estoppel or waiver or liability are not intended to, nor shall they act as a release, estoppel or waiver of liability incurred under the Maryland Franchise Registration and Disclosure Law.
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 requirement was imposed by the Maryland Office of the Attorney General Securities Division due to Franchisor's financial condition.
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 FDD, the governing state law depends on the location of the franchise. For franchisees operating in Illinois, the agreements between the parties are governed by Illinois law. This is specified in an addendum to the franchise agreement if (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.
This means that if a Buff City Soap franchise is established in Illinois, or if the franchisee resides in Illinois, Illinois law will dictate the terms and enforcement of the franchise agreement. The FDD also notes that any provision in the franchise agreement that designates jurisdiction or venue outside of Illinois is void, although the agreement may provide for arbitration outside of Illinois. This protects the franchisee by ensuring disputes are generally resolved within the state, unless arbitration is agreed upon.
Furthermore, the FDD states that any attempt to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void. This provision is designed to protect franchisees from unknowingly relinquishing their rights under Illinois law. The FDD also mentions that the franchisee's rights upon termination and non-renewal of a franchise agreement are detailed in sections 19 and 20 of the Illinois Franchise Disclosure Act, providing a clear reference for franchisees to understand their rights in such situations.
For a Buff City Soap franchise operating in Maryland, as to franchises governed by the Maryland Franchise Registration and Disclosure Law, if any of the terms of the Disclosure Document are inconsistent with the terms below, the terms below control. All representations requiring prospective franchisees to assent to a release, estoppel or waiver or liability are not intended to, nor shall they act as a release, estoppel or waiver of liability incurred under the Maryland Franchise Registration and Disclosure Law.