Can arbitration for an Amorino area development agreement take place outside of Illinois?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
AMENDMENT TO AREA DEVELOPMENT AGREEMENT (ILLINOIS)
Illinois law governs the Area 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 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, an area development agreement may provide for arbitration to take place outside of Illinois, despite Illinois law governing the agreement. This is in conformance with Section 4 of the Illinois Franchise Disclosure Act, which states that any provision designating jurisdiction and venue outside of Illinois is void, but makes an exception for arbitration.
This means that while lawsuits related to the Amorino area development agreement must be held in Illinois, the arbitration process, which is a method of resolving disputes out of court, can occur in another state. Arbitration is often seen as a quicker and less expensive alternative to litigation, but the location can impact costs and convenience for the franchisee.
For a prospective Amorino area developer in Illinois, this clause offers some flexibility. While they cannot be forced to litigate outside of Illinois, they could be required to participate in arbitration in another state. It is important for potential franchisees to understand the implications of this clause and consider the potential costs and inconveniences of arbitrating a dispute outside of Illinois. They should discuss this with a legal professional before signing the agreement.