Which state's internal laws govern the Aira Fitness franchise agreement?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 1051 et. seq.), and except that all issues relating to arbitrability or the enforcement or interpretation of the agreement to arbitrate set forth in this Section shall be governed by the United States Arbitration Act (9 U.S.C.
Section 1 et seq) and the federal common law relating to arbitration, this Agreement and the franchise shall be governed by the internal laws of the State of Illinois (without reference to its choice of law and conflict of law rules), except that the provisions of any franchise law of such state shall not apply unless the jurisdictional requirements ofsaid law have been met independently of this provision.
You agree that we may institute any action against your arising out of or relating to this Agreement, which is not required to be arbitrated under this Agreement or as to which arbitration has been waived by the parties, in any state or federal court of jurisdiction located in the State of Illinois and Franchisee irrevocably submits to the exclusive jurisdiction or venue of such courts.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, the franchise agreement is governed by the internal laws of Illinois. This means that the laws of Illinois, without regard to its choice of law or conflict of law rules, will be used to interpret and enforce the agreement. However, this is with the exception of issues relating to arbitrability or the enforcement or interpretation of the agreement to arbitrate, which are governed by the United States Arbitration Act and federal common law relating to arbitration.
This clause specifies that if there are disputes regarding the franchise agreement, Illinois law will generally apply. This is common in franchise agreements as it provides a consistent legal framework. However, the agreement also carves out an exception for arbitration-related matters, which will be governed by federal law. This is also a common practice, as arbitration is often favored as a method of dispute resolution in franchise agreements.
For a prospective Aira Fitness franchisee, this means that they may need to familiarize themselves with Illinois law, or consult with an attorney who is knowledgeable in Illinois franchise law, to fully understand their rights and obligations under the franchise agreement. It is important to note that the provisions of any franchise law of Illinois will not apply unless the jurisdictional requirements of said law have been met independently of this provision. Furthermore, Aira Fitness can institute legal action against the franchisee in any state or federal court of jurisdiction located in the State of Illinois, and the franchisee consents to the exclusive jurisdiction or venue of such courts.