For Aerus franchises in Illinois, where will all court litigation take place?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
For all franchises in the State of Illinois, the forum for all court litigation shall be Cook County, Illinois and Illinois law shall govern the interpretation, construction, and enforcement of this Agreement (regardless of any choice of law rules). Notwithstanding the foregoing, 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 forum for all court litigation for franchises in Illinois will be Cook County, Illinois. However, the document specifies that while court litigation will occur in Cook County, arbitration proceedings will take place in Dallas, Texas. This means that if a dispute arises that goes to court, it will be handled in Illinois, but if the dispute is handled through arbitration, it will be handled in Texas.
This stipulation is part of an Illinois addendum to the franchise agreement, highlighting that Illinois law governs the agreements between Aerus and its Illinois franchisees. The addendum also states that any provision in the franchise agreement that designates jurisdiction or venue outside the State of Illinois is void, reinforcing the importance of Cook County as the location for court litigation. This ensures that Illinois franchisees have legal proceedings occur within their state, which may offer some convenience and familiarity with local laws.
It is important to note that this arrangement does not prevent Aerus from requiring arbitration to occur outside of Illinois, as the document specifically allows for arbitration in Dallas, Texas. Franchisees should understand the difference between litigation and arbitration, as well as the implications of having these processes occur in different locations. Prospective franchisees should carefully consider the implications of these venue choices and how they might affect dispute resolution.