For an Aplus franchise in Illinois, is a clause designating jurisdiction and venue outside of Illinois enforceable?

According to Aplus's 2024 Franchise Disclosure Document, any clause within the franchise agreement that designates jurisdiction and venue outside of Illinois is void and unenforceable with respect to any cause of action that is otherwise enforceable in Illinois. This means that if an Aplus franchisee in Illinois has a legal dispute that can be pursued in Illinois courts, they cannot be forced to litigate the matter in another state, regardless of what the franchise agreement might say. This protection is provided by the Illinois Franchise Disclosure Act. However, the agreement may provide for arbitration in a forum outside of Illinois.

This provision is favorable for prospective Aplus franchisees in Illinois because it ensures that they will not be at a disadvantage by having to travel to another state to resolve legal disputes with Aplus. Litigating in a distant forum can be significantly more expensive and inconvenient, potentially deterring franchisees from pursuing legitimate claims. The Illinois Franchise Disclosure Act aims to level the playing field and protect franchisees' rights within their home state.

It is important to note that while venue selection clauses are unenforceable, the Aplus franchise agreement may still require arbitration to take place outside of Illinois. Arbitration is a form of alternative dispute resolution that is often faster and less expensive than traditional litigation, but it may also have limitations on discovery and appeal rights. Franchisees should carefully consider the implications of any arbitration clause in the franchise agreement and consult with an attorney to understand their rights and obligations.

Furthermore, the FDD states that any condition, stipulation, or provision that attempts to bind a person acquiring an Aplus franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void. This reinforces the protection afforded to franchisees under Illinois law and prevents Aplus from circumventing these protections through contractual terms. Illinois law shall apply to and govern the Franchise Agreement and Development Agreement.