Is arbitration for Aunt Millies Bakeries allowed to take place outside of Illinois?
Aunt_Millies_Bakeries 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, arbitration may take place outside of Illinois.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to the 2025 Aunt Millies Bakeries Franchise Disclosure Document, while the franchise agreements are governed by Illinois law, arbitration may occur outside of Illinois. Specifically, any provision in the franchise agreement that designates jurisdiction and venue in a forum outside of Illinois is void, but this does not prevent arbitration from taking place outside of the state. This is mentioned in the context of agreements with both First Capital Acceptance Corp. and Distribution Services of America, Inc.
For a prospective Aunt Millies Bakeries franchisee, this means that while legal disputes would generally be subject to Illinois law, the arbitration process—a method of resolving disputes outside of court—could potentially take place in a location other than Illinois. This could add complexity and cost to the resolution process, depending on where the arbitration is held.
It is important for potential franchisees to understand that the location of arbitration can impact travel costs, legal representation, and familiarity with local arbitration rules. Therefore, prospective franchisees should discuss with Aunt Millies Bakeries the circumstances under which arbitration might occur outside of Illinois and what factors would determine the location of such proceedings.