What section of the Buns On Fire franchise agreement addresses the choice of forum?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Section 24.10.4 of the Franchise Agreement requires venue to be limited to the state, county and judicial district in which the Franchisor's principal place of business is then located. This provision is hereby deleted from all Franchise Agreements for residents of the State of Maryland and/or franchises to be operated in the State of Maryland.
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.
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).
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, Section 24.10.4 of the Franchise Agreement dictates that any legal venue must be limited to the state, county, and judicial district where Buns On Fire's primary business is located. However, this provision is specifically removed from all Franchise Agreements for residents of Maryland or franchises operating in Maryland.
For franchisees in Illinois, the FDD states that any provision designating jurisdiction and venue outside of Illinois is void, as per Section 4 of the Illinois Franchise Disclosure Act. This means that Buns On Fire franchisees in Illinois cannot be forced to litigate disputes in another state. However, the agreement can stipulate that arbitration may occur outside of Illinois.
Furthermore, the Guaranty section of the Buns On Fire franchise agreement specifies that any litigation arising from the Guaranty will be exclusively instituted in a court of competent jurisdiction in Cook County, Illinois. The guarantor agrees to submit any dispute regarding venue to a court in Cook County, Illinois, and waives any claim that this venue is improper or inconvenient.