Regarding Angry Chickz franchises in Illinois, can the franchise agreement designate jurisdiction and venue in a forum outside of Illinois?

According to the 2025 Angry Chickz Franchise Disclosure Document, specifically the addendum for Illinois, any provision in the franchise agreement that designates jurisdiction and venue in a forum outside of Illinois is void. This means that if a dispute arises that leads to litigation, an Illinois franchisee cannot be forced to litigate the matter in another state. This protection is in place due to Section 4 of the Illinois Franchise Disclosure Act.

However, the FDD also states that the franchise agreement may provide for arbitration to take place outside of Illinois. So, while litigation must occur within Illinois, Angry Chickz can require that any disputes be settled through arbitration in another state. Arbitration is a form of alternative dispute resolution where a neutral third party hears both sides of the argument and makes a decision.

This distinction is important for prospective franchisees to understand. While they are protected from having to litigate outside of Illinois, they may still be required to participate in arbitration in another state. Franchisees should consider the potential costs and inconveniences associated with out-of-state arbitration when evaluating the Angry Chickz franchise opportunity.