In Illinois, where must any cause of action related to the Alloy Franchise Agreement be brought?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
Subject to Section 12.A, any cause of action, claim, suit or demand allegedly arising from or related to the terms of this Agreement or the relationship of the parties must be brought in the Illinois federal or state court for the Designated Area in which you are located.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, for franchisees in Illinois, any legal action related to the Franchise Agreement must be initiated in either the federal or state court within the Designated Area of Illinois where the franchisee's business is located. This requirement is specified in an addendum to the Franchise Agreement that addresses Illinois-specific regulations.
This stipulation means that if an Alloy franchisee in Illinois has a dispute with the company, they cannot be required to pursue legal action in another state. The legal proceedings must occur within Illinois, specifically in a court that serves the geographic area where the franchise operates. This protects the franchisee from having to bear the additional costs and burdens of litigating a case in a distant or inconvenient location.
This requirement is in place to ensure that Illinois franchisees are afforded certain protections under Illinois law, particularly the Illinois Franchise Disclosure Act. The addendum explicitly states that any provision in the franchise agreement that designates jurisdiction or venue outside of Illinois is void, reinforcing the franchisee's right to resolve disputes within the state. However, the franchise agreement may provide for arbitration to take place outside of Illinois.