If arbitration is not required for a dispute involving Aira Fitness, in which state's courts must litigation occur, according to Section 13C of the Franchise Agreement?

According to Aira Fitness's 2025 Franchise Disclosure Document, Section 13C of the Franchise Agreement specifies the choice of forum for litigation. If arbitration is not required, litigation must occur in Illinois courts that have jurisdiction. However, this is subject to applicable state laws regulating franchising, which may restrict or prohibit this clause.

This means that while Aira Fitness generally prefers litigation to take place in Illinois, where it is based, state franchise laws could override this provision. Certain states have addenda that modify the standard franchise agreement to comply with their local regulations. For example, the addendum for Illinois states that any provision designating jurisdiction and venue outside of Illinois is void, although arbitration may still occur outside of the state.

For a prospective Aira Fitness franchisee, this indicates that the location of any potential litigation could depend on the franchisee's location and the specific state laws in place. Franchisees should be aware of their state's franchise laws and any addenda to the franchise agreement that may apply to them. It is important to consult with a legal professional to understand the implications of these clauses and how they may affect their rights and obligations.

Therefore, while the Aira Fitness franchise agreement generally designates Illinois as the forum for litigation, franchisees need to carefully review any state-specific addenda and consult with legal counsel to determine the actual jurisdiction and venue for resolving disputes.