For Buns On Fire franchises in Indiana, what state's law governs the Franchise Agreement?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
INDIANA ADDENDUM TO FRANCHISE AGREEMENT
Notwithstanding anything to the contrary set forth in the Franchise Agreement, the following provisions will supersede and apply:
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- The laws of the State of Indiana supersede any provisions of the Franchise Agreement or Illinois law if such provisions are in conflict with Indiana law. The Franchise Agreement will be governed by Indiana law, rather than Illinois law, as stated in Section 24.10.3 of the Franchise Agreement.
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- Venue for litigation will not be limited to Illinois, as specified in Section 24.10.4 of the Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, the laws of Indiana will govern Franchise Agreements for franchises located in Indiana. Specifically, the Indiana Addendum to the Franchise Agreement states that any provisions of the Franchise Agreement or Illinois law are superseded by Indiana law if they conflict. Section 24.10.3 of the Franchise Agreement, which originally stated that Illinois law would govern, is superseded by Indiana law for franchises in Indiana.
This means that if a Buns On Fire franchisee in Indiana has a legal dispute related to the franchise agreement, Indiana law will be applied by the courts. This is significant because franchise laws vary from state to state, and Indiana has specific statutes, such as the Indiana Franchise Disclosure Law and the Indiana Deceptive Franchise Practices Act, that are designed to protect franchisees.
Furthermore, the addendum clarifies that venue for litigation will not be limited to Illinois, as originally specified in Section 24.10.4 of the Franchise Agreement. This change ensures that Buns On Fire franchisees in Indiana are not required to travel to Illinois for legal proceedings, offering them a more convenient and potentially less expensive option to resolve disputes in their home state.