What state's laws govern the interpretation of the Buona agreement?

According to Buona's 2025 Franchise Disclosure Document, the laws of Illinois govern the interpretation of the franchise agreement. Specifically, the agreement is governed by and interpreted under the laws of the State of Illinois, without regard to its principles of conflict of laws. This means that any legal disputes arising from the franchise agreement will be subject to Illinois state law.

For a prospective Buona franchisee, this is an important consideration because the laws of Illinois will dictate how the franchise agreement is understood and enforced. This includes aspects such as contract interpretation, dispute resolution, and the rights and obligations of both the franchisee and franchisor. Franchisees should familiarize themselves with key aspects of Illinois law that may affect their franchise operations.

However, there are exceptions. For instance, all arbitration proceedings between Buona and the developer will be governed by the Federal Arbitration Act (FAA), meaning that federal law takes precedence over state law in these specific situations. Additionally, if a claim is asserted in any legal proceeding involving the developer and/or any affiliate of the developer and Buona, the exclusive venue for disputes between them shall be.