In the context of the Aira Fitness franchise, what does the addendum say about provisions designating jurisdiction and venue outside of Illinois?

According to Aira Fitness's 2025 Franchise Disclosure Document, the addendum for Illinois addresses provisions that designate jurisdiction and venue. Specifically, any provision in the franchise agreement or multi-unit development agreement that designates jurisdiction and venue in a forum outside of Illinois is considered void, as it does not conform with Section 4 of the Illinois Franchise Disclosure Act. This means that if a dispute arises, it must be resolved within the legal jurisdiction of Illinois, protecting franchisees in Illinois from having to travel to other states to resolve legal matters.

However, the addendum clarifies an exception to this rule: the franchise agreement may still provide for arbitration to occur outside of Illinois. Arbitration is a form of alternative dispute resolution where a neutral third party helps to resolve the dispute. This means that while lawsuits must be handled in Illinois, Aira Fitness franchisees and the company can agree to resolve disputes through arbitration in another state if they both prefer that method.

This provision is designed to protect Aira Fitness franchisees in Illinois by ensuring they are not forced to litigate disputes in potentially distant and inconvenient locations. It aligns with the Illinois Franchise Disclosure Act, which aims to provide certain protections to franchisees within the state. Franchisees should be aware of this clause and understand their rights regarding dispute resolution, particularly the distinction between jurisdiction/venue and arbitration.