What state's law governs the construction of the Aira Fitness Franchise Agreement and the parties' relationship, according to Section 13C, excluding issues governed by federal law?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Illinois law governs the Franchise Agreement and Multi-Unit Development Agreement. In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
Source: Item 17 — **RENEWAL, TERMINATION,TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 48–54)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, the governing law for the Franchise Agreement and Multi-Unit Development Agreement is Illinois law. This is specified in the addendum to the Aira Fitness Franchise Agreement for the state of Illinois.
However, the FDD also notes an important caveat. In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. This means that while Illinois law governs the agreement, Aira Fitness franchisees cannot be forced to litigate disputes outside of Illinois.
The addendum clarifies that while jurisdiction and venue cannot be forced outside of Illinois, the franchise agreement may still provide for arbitration to take place outside of Illinois. This means that Aira Fitness retains the option to pursue arbitration in a different state, but franchisees retain their right to litigate within Illinois if they prefer.