If the Aerus franchise agreement requires binding arbitration, where is the location of the arbitration?
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 for Illinois franchisees is specified. For all court litigation, the forum is Cook County, Illinois. However, the FDD states that the forum for all arbitration proceedings will be in Dallas, Texas.
This means that if an Aerus franchisee in Illinois has a dispute that goes to arbitration, the proceedings will take place in Dallas, Texas, regardless of the franchisee's location or the location of the franchised business. This could involve additional travel expenses and logistical challenges for the franchisee.
It is important to note that Illinois law dictates that any provision in the franchise agreement that designates jurisdiction or venue outside the State of Illinois is void, but the franchise agreement may provide for arbitration in a venue outside of Illinois. This addendum clarifies the legal stipulations specific to Illinois franchisees, ensuring compliance with state law while outlining the arbitration location.