Are there any exceptions to the choice of forum for Buns On Fire litigation or arbitration?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
C. Restriction on Forum: Requiring North Dakota franchisees to consent to the jurisdiction of courts outside of North Dakota.
§ 19-28.1-14 of the Rhode Island Franchise Investment Act provides that "A provision in a franchise agreement restricting jurisdiction or venue to a forum outside this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under this 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.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, there are specific state addenda that address choice of forum for litigation or arbitration.
For franchisees in Illinois, any provision in the franchise agreement that designates jurisdiction and venue in a forum outside of Illinois is void, although the franchise agreement may stipulate that arbitration can occur outside of Illinois.
For franchisees in North Dakota, the North Dakota Securities Commissioner considers it unfair to require franchisees to consent to the jurisdiction of courts outside of North Dakota or to arbitrate disputes at a location remote from the franchisee's business.
For franchisees in Rhode Island, the Rhode Island Franchise Investment Act stipulates that any provision in a franchise agreement restricting jurisdiction or venue to a forum outside of Rhode Island or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under that Act.
For the Guaranty, any litigation arising out of or related to the Guaranty will be instituted exclusively in a court of competent jurisdiction in Cook County, Illinois, and 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.