Where must Corner Bakery Cafe file a lawsuit against a franchisee?
Corner_Bakery_Cafe Franchise · 2025 FDDAnswer from 2025 FDD Document
ADDENDUM TO THE CORNER BAKERY CAFE AREA DEVELOPMENT AGREEMENT REQUIRED FOR ILLINOIS DEVELOPERS
This Addendum to the Corner Bakery Cafe Area Development Agreement dated ("Development Agreement") between Best Cafe – Franchises, LLC ("Franchisor", "we", "us" or "our"), a Delaware limited liability company, and ("Developer," "you" or "your"), a, is entered into simultaneously with the execution of the Development Agreement.
- 1. The provisions of this Addendum form an integral part of, and are incorporated into the Development Agreement. This Addendum is being executed because: (A) the offer or sale of a franchise to you was made in the State of Illinois; (B) you are a resident of the State of Illinois; and/or (C) part or all of the Development Area is located in the State of Illinois.
- 2. The following sentence is added to the end of Section 10:
Notwithstanding the foregoing, Illinois law shall govern this Agreement.
3. The following sentence is added to the end of Section 10:
Section 4 of the Illinois Franchise Disclosure Act provides that any provision in a franchise agreement which designates jurisdiction or venue in a forum outside of Illinois is void with respect to any cause of action which otherwise is enforceable in Illinois.
4. The following sentence is added to the end of Section 10:
Section 27 of the Illinois Franchise Disclosure Act provides that causes of action under the Act must be brought within the earlier of: 3 years of the violation, 1 year after the franchisee becomes aware of the underlying facts or circumstances or 90 days after delivery to the franchisee of a written notice disclosing the violation.
5. The following sentence is added to the end of Section 10:
Section 41 of the Illinois Franchise Disclosure Act states that any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with any provision of the Act is void.
Source: Item 22 — CONTRACTS (FDD page 55)
What This Means (2025 FDD)
According to the 2025 Corner Bakery Cafe Franchise Disclosure Document, the location where a lawsuit must be filed depends on the franchisee's location. For Illinois franchisees, Section 4 of the Illinois Franchise Disclosure Act stipulates that any provision in the franchise agreement that designates jurisdiction or venue outside of Illinois is void concerning any cause of action enforceable in Illinois. This means Corner Bakery Cafe cannot force an Illinois franchisee to litigate outside of Illinois for claims enforceable in Illinois. Similarly, for Minnesota franchisees, Minnesota Statute § 80C.21 and Minnesota Rule 2860.4400J prohibit Corner Bakery Cafe from requiring litigation to be conducted outside Minnesota.
For franchisees in Maryland, the FDD includes an addendum that allows the franchisee to bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, regardless of any conflicting provisions in the standard franchise agreement.
In summary, the FDD dictates that Corner Bakery Cafe must adhere to specific state laws that protect franchisees' rights to litigate within their home states for claims arising under those states' franchise laws. This ensures that franchisees are not unduly burdened by having to pursue legal action in a distant or inconvenient forum.