Can Angry Chickz require arbitration or litigation to be conducted outside of the franchisee's state?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
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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.
Minnesota Statute 80C.21 and Minnesota Rule 2860.4400(J) prohibit the Franchisor from requiring litigation to be conducted outside Minnesota
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.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the ability of Angry Chickz to require arbitration or litigation outside of a franchisee's state depends on the state in question. For franchisees in Illinois, the FDD states that while franchise agreements cannot designate jurisdiction and venue outside of Illinois, they may require arbitration to take place outside of the state. Conversely, for franchisees in Minnesota, Minnesota statutes prohibit Angry Chickz from requiring litigation to be conducted outside of Minnesota.
For Washington franchisees, any arbitration or mediation involving a franchise purchased in Washington must occur either in Washington, 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. Additionally, if litigation is not precluded by the franchise agreement, a franchisee can bring an action related to the sale of franchises or a violation of the Washington Franchise Investment Protection Act in Washington.
These stipulations highlight the importance of franchisees understanding the specific laws and protections afforded to them by their state. The FDD addenda for each state modify the standard franchise agreement to comply with local regulations, particularly regarding dispute resolution and franchisee rights. Prospective franchisees should carefully review the addendum specific to their state and consult with legal counsel to fully understand their rights and obligations.