Does the Illinois addendum to the Aira Fitness agreement allow for franchise agreement provisions that designate jurisdiction and venue in a forum outside of the state?

According to the 2025 Aira Fitness Franchise Disclosure Document, the Illinois addendum addresses the issue of jurisdiction and venue. Specifically, it states that any provision in the franchise agreement that designates jurisdiction and venue in a forum outside of Illinois is void, as it would violate Section 4 of the Illinois Franchise Disclosure Act. This means that Aira Fitness franchisees in Illinois cannot be forced to litigate disputes in another state.

However, the addendum includes an important exception: the franchise agreement may still provide for arbitration to take place outside of Illinois. So while Aira Fitness cannot require Illinois franchisees to resolve disputes through litigation in another state, they can require arbitration to occur elsewhere. This distinction is significant because arbitration is often less expensive and time-consuming than traditional litigation.

In practical terms, this means that if an Aira Fitness franchisee in Illinois has a dispute with the company, they likely cannot be forced to sue Aira Fitness in, for example, Delaware (where Aira Fitness is incorporated) or another state. However, Aira Fitness could potentially require the franchisee to participate in arbitration outside of Illinois, depending on the specific language of the franchise agreement. Franchisees should carefully review the dispute resolution provisions of their agreement and consult with an attorney to understand their rights and obligations under Illinois law.