Which state's law governs the Aira Fitness Franchise Agreement and Multi-Unit Development Agreement?
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 laws governing the Franchise Agreement and Multi-Unit Development Agreement is Illinois law. Furthermore, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void, in conformance with Section 4 of the Illinois Franchise Disclosure Act. However, the franchise agreement may allow for arbitration to occur outside of Illinois.
This means that if a dispute arises between Aira Fitness and a franchisee, Illinois law will be used to interpret the agreement. This is important for prospective franchisees to understand, as they may need to familiarize themselves with Illinois franchise laws. The FDD includes addenda for several states that address how those states' laws may supersede the standard agreement.
It is fairly common in franchising for the franchise agreement to specify which state's laws govern the agreement. This helps provide clarity and predictability in the event of a dispute. However, franchisees should be aware that their local state laws may also apply, particularly in areas such as franchise registration and termination rights. Aira Fitness franchisees should consult with an attorney to understand the full scope of their legal rights and obligations.