What is the relationship between the Federal Arbitration Act and 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)
The 2025 Aerus Franchise Disclosure Document includes an Illinois addendum that addresses the relationship between the franchise agreement and arbitration. According to the addendum, Illinois law governs the agreements between the parties in the franchise agreement.
Specifically, any provision in the franchise agreement that designates jurisdiction or venue outside the State of Illinois is voided. However, the franchise agreement may provide for arbitration in a venue outside of Illinois, as permitted by 815 ILCS 705/4 (West 2012).
For Illinois franchisees, the forum for all court litigation will be Cook County, Illinois, while the forum for all arbitration proceedings will be in Dallas, Texas. This means that while Illinois franchisees are subject to arbitration, they are not required to litigate in a non-Illinois court.