For Buns On Fire franchises in Indiana, is venue for litigation limited to Illinois?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
In recognition of the requirements of the Indiana Franchise Disclosure Law, Indiana Code §§ 23-2-2.5- 1 to 23-2-2.5-51, and the Indiana Deceptive Franchise Practices Act, Indiana Code §§ 23-2-2.7-1 to 23-2- 2.7-10, the Franchise Disclosure Document for Buns on Fire, for use in the State of Indiana shall be amended as follows:
The Indiana Deceptive Franchise Practices Act requires that Indiana law govern any cause of action which arises under the Indiana Franchise Disclosure Law or the Indiana Deceptive Franchise Practices Act.
Any litigation arising out of or related to this Guaranty will be instituted exclusively in a court of competent jurisdiction in Cook County, Illinois. The undersigned agree that any dispute as to the venue for this litigation will be submitted to and resolved exclusively by a court of competent jurisdiction situated in Cook County, Illinois. The undersigned hereby waive and covenant never to assert or claim that said venue is for any reason improper, inconvenient, prejudicial or otherwise inappropriate (including, without limitation, any claim under the judicial doctrine of forum non conveniens).
If, however, any provision of this Guaranty would not be enforceable under the laws of Illinois, and if the business franchised under the Franchise Agreement is located outside of Illinois and the provision would be enforceable under the laws of the state in which the franchised business is located, then the provision (and only that provision) will be interpreted and construed under the laws of that state.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, the addendum for Indiana states that Indiana law governs any cause of action arising under the Indiana Franchise Disclosure Law or the Indiana Deceptive Franchise Practices Act. This means that for claims arising under these specific Indiana laws, Indiana law will apply. However, the document does not explicitly address whether litigation venue is limited to Illinois for other types of disputes.
For the Guaranty, any litigation must occur in Cook County, Illinois. The franchisee also waives the right to claim that this venue is improper or inconvenient. However, if any part of the Guaranty is unenforceable under Illinois law, but is enforceable under the laws of the state where the franchised business is located, then that specific part will be interpreted under that state's laws.
Prospective Buns On Fire franchisees in Indiana should seek clarification from the franchisor regarding the specific venue for litigation related to the Franchise Agreement, particularly for disputes not covered by the Indiana Franchise Disclosure Law or the Indiana Deceptive Franchise Practices Act. It would be prudent to consult with a legal professional to fully understand their rights and obligations regarding dispute resolution and venue.