What law governs all Buns On Fire Franchise Agreements in Illinois?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT FOR THE STATE OF ILLINOIS
By reading this disclosure document, you are not agreeing to, acknowledging, or making any representations whatsoever to the Franchisor and its affiliates.
Illinois law governs the Franchise Agreement.
In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
Your rights upon Termination and Non-Renewal of an agreement are set forth in Section 19 and Section 20 of the Illinois Franchise Disclosure Act.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, Illinois law governs all Illinois Franchise Agreements. The Illinois Addendum to the Franchise Agreement specifies this. Additionally, any provision in a Buns On Fire franchise agreement that designates jurisdiction and venue in a forum outside of Illinois is void, according to Section 4 of the Illinois Franchise Disclosure Act. However, the agreement may allow for arbitration to occur outside of Illinois.
This means that if a Buns On Fire franchisee in Illinois has a legal dispute with the company, Illinois law will be applied to the case. Furthermore, the legal proceedings must take place within Illinois, ensuring that franchisees are not forced to travel to another state to resolve disputes. The exception for arbitration allows for alternative dispute resolution methods to occur outside of Illinois, if agreed upon.
It is also important to note that Section 41 of the Illinois Franchise Disclosure Act states that any attempt to waive compliance with the Act is void. This protects franchisees from being forced to give up their rights under Illinois law. Additionally, payment of the Initial Franchise Fee and all other fees owed to Franchisor or its affiliates, by the Franchisee, are deferred until such time as all initial obligations owed to the Franchisee under the Franchise Agreement or other agreements have been fulfilled by Franchisor and the Franchisee has commenced doing business pursuant to the Franchise Agreement. The Illinois Attorney General's Office imposed this deferral requirement due to Franchisor's financial condition.