Which state's laws govern the Pearce Bespoke Franchise Agreement?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
AMENDMENT TO THE PEARCE BESPOKE FRANCHISING LLC FRANCHISE AGREEMENT REQUIRED BY THE STATE OF ILLINOIS
In recognition of the requirements of the Illinois Franchise Disclosure Act, 815 ILCS §§ 705/1 et seq. (1987) (the "Act"), which govern the attached Board and Brush Creative Studio Franchise Agreement (the "Franchise Agreement"), the parties thereto agree as follows:
- To the extent of any inconsistences, the Franchise Agreement is hereby amended to further state:
"Section 4 of the Act provides that no franchisee shall be required to litigate any cause of action, with the exception of arbitration proceedings, arising under the Franchise Agreement or the Act outside of the State of Illinois."
- To the extent of any inconsistences, the Franchise Agreement is hereby amended to further state:
"Illinois law governs the terms of this Franchise Agreement."
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke FDD, the Illinois Franchise Disclosure Act requires that Illinois law governs the terms of the Franchise Agreement for franchisees in Illinois. Specifically, the FDD states that to the extent of any inconsistencies, the Franchise Agreement is amended to state that Illinois law governs the terms of the agreement.
This means that if a Pearce Bespoke franchisee is operating in Illinois, the interpretation and enforcement of the franchise agreement will be subject to Illinois state law. This amendment ensures that Illinois franchisees are protected by the Illinois Franchise Disclosure Act, which aims to provide certain rights and protections to franchisees within the state.
Additionally, the FDD includes addenda and amendments related to the franchise agreements for franchisees in Rhode Island, Maryland, and New York, addressing specific legal requirements and provisions within those states. For example, Rhode Island franchisees are permitted to bring a lawsuit in Rhode Island for claims arising under the Rhode Island Franchise Investment Act, regardless of what the standard agreement says. Similarly, the Maryland amendment addresses requirements under the Maryland Franchise Registration and Disclosure Law. New York requires specific information on comparing franchisors and negotiation rights to be disclosed.
Prospective Pearce Bespoke franchisees should carefully review these state-specific amendments and addenda to understand how the franchise agreement may be modified or interpreted differently based on the state in which they operate. It is also advisable to consult with a legal professional to fully understand their rights and obligations under the franchise agreement and applicable state laws.