Does the Angry Chickz franchise agreement require parties to arbitrate disputes at a location remote from the franchisee's business site?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- **3.
Site of Arbitration, Mediation, and/or Litigation.** In any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation.
In addition, if litigation is not precluded by the franchise agreement, a franchisee may bring an action or proceeding arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.
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- 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.
ANGRY CHICKZ may file any controversy or claim whatsoever arising out of or relating to this Release or the enforcement of the promises in this Release or with regard to the interpretation, formation, or breach of this Release in the court where its principal offices are located, where Franchisee resides or does business, or where the claim arose.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the franchise agreement's arbitration location depends on the franchisee's location. For franchisees in Washington, the arbitration or mediation site must be in Washington, or a location mutually agreed upon, or as determined by the arbitrator or mediator. However, the Illinois Area Development Agreement and Franchise Agreement state that any provision designating jurisdiction and venue outside of Illinois is void, but arbitration may occur outside of Illinois. For a General Release, Angry Chickz may file any controversy or claim in the court where its principal offices are located, where the franchisee resides or does business, or where the claim arose.
For prospective Angry Chickz franchisees, this means that the location of arbitration can vary. Franchisees in Washington have some protection in that arbitration should occur in Washington unless otherwise agreed. Illinois franchisees cannot be forced to litigate outside of Illinois, but can be required to arbitrate outside of Illinois.
It is important for potential franchisees to understand these stipulations as legal proceedings can be costly, especially if they must occur in a location far from the franchisee's business. Franchisees should seek legal counsel to fully understand the implications of these clauses in the franchise agreement.