What state's law governs the validity and interpretation of the Buns On Fire agreement?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, the governing law for the franchise agreement is generally Illinois law. However, this is modified by addenda for specific states.
For franchisees in Hawaii, the FDD includes an addendum acknowledging the Hawaii Franchise Investment Law. For franchisees in Illinois, Illinois law governs the Franchise Agreement, but any provision designating jurisdiction and venue outside of Illinois is void, although arbitration may occur outside of Illinois.
For franchisees in Rhode Island, any provision in the Franchise Agreement that designates the governing law as that of any state other than Rhode Island is deleted. Similarly, in Washington, in the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act prevail. For franchisees in Maryland, certain acknowledgements and venue requirements are deleted from the franchise agreement.