Where will arbitration occur according to the Aerus franchise agreement?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
This addendum is applicable for all Illinois franchises.
Illinois law governs the agreements between the parties to this franchise.
Any provision in the franchise agreement that designates jurisdiction or venue outside the State of Illinois is void. However, a franchise agreement may provide for arbitration in a venue outside of Illinois. 815 ILCS 705/4 (West 2012). Accordingly, the forum for all court litigation shall be Cook County, Illinois and the forum for all arbitration proceedings shall be in Dallas, Texas.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the location for arbitration proceedings depends on the state where the franchise is located. For franchises in Illinois, the FDD specifies that arbitration proceedings will occur in Dallas, Texas. However, for franchises located outside of Illinois, the FDD does not specify a location for arbitration proceedings.
This means that if a prospective Aerus franchisee is located in Illinois and a dispute arises that leads to arbitration, they will be required to travel to Dallas, Texas, for the proceedings. This could result in increased costs for travel, accommodation, and legal representation, as they would need to hire representation familiar with Texas law.
For prospective Aerus franchisees located outside of Illinois, it is important to carefully review the franchise agreement to determine where arbitration proceedings would take place. If the location is not specified, it is advisable to seek clarification from Aerus before signing the agreement to fully understand the potential implications of arbitration.