Where is the exclusive venue for disputes involving Aira Fitness and the Developer, as specified in the franchise agreement?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
costs, other litigation expenses and travel and living expenses, and any damages we incur as a result of the breach of any such provision. You further agree to waive any claims for damages in the event there is a later determination that an injunction or specific performance order was issued improperly.
- 12.3 Arbitration. Except for controversies, disputes or claims related to or based on Developer's use of the Marks or Confidential Information, Developer's compliance with its noncompetition obligations, all controversies, disputes or claims between Franchisor, its affiliates, and their respective owners, officers, directors, agents, employees and attorneys, and Developer (its affiliates and owners and guarantors, if applicable), arising out of or related to this Agreement or any other agreement between the parties; the parties' rights and obligations under this Agreement; Franchisor's relationship with Developer or the obligations by and between the parties; or the validity of this Agreement or any other agreement between Franchisor and Developer or any provision of such agreements, will be submitted to binding Arbitration administered by the American Arbitration Association ("AAA") in accordance with the AAA's then-current Commercial Arbitration Rules. The arbitration hearing shall take place in McHenry County, Illinois, before a single arbitrator.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, disputes between the Franchisor, its affiliates, and their owners, officers, directors, agents, employees, and attorneys, and the Developer (including affiliates, owners, and guarantors), arising from the Development Agreement or any other agreement between the parties, will be submitted to binding arbitration. This arbitration is managed by the American Arbitration Association (AAA) following its Commercial Arbitration Rules. The location for the arbitration hearing is McHenry County, Illinois, and will be conducted before a single arbitrator.
However, this arbitration clause does not apply to controversies, disputes, or claims related to the Developer's use of Aira Fitness's Marks or Confidential Information, or the Developer's compliance with non-competition obligations. For these specific types of disputes, Aira Fitness reserves the right to institute actions against the franchisee in any state or federal court located in the State of Illinois, and the franchisee consents to the exclusive jurisdiction or venue of those courts.
This means that depending on the nature of the dispute, an Aira Fitness developer may be required to participate in arbitration in McHenry County, Illinois, or litigate in Illinois state or federal courts. Franchisees should be aware of these venue provisions as they could incur significant travel and legal expenses depending on where they are located. It is also important to understand which types of disputes are subject to arbitration versus litigation, as this will affect the process and location of resolving any potential conflicts with Aira Fitness.