Is arbitration for Aunt Millies Bakeries franchises allowed to take place outside of Illinois?

According to the 2025 Aunt Millies Bakeries Franchise Disclosure Document, while the franchise agreement cannot designate jurisdiction and venue in a forum outside of Illinois, arbitration may occur outside of Illinois. This stems from Section 4 of the Illinois Franchise Disclosure Act. This means that while lawsuits would likely need to be filed and proceed within Illinois, the arbitration process—a form of alternative dispute resolution—can be conducted elsewhere.

For a prospective Aunt Millies Bakeries franchisee, this is an important distinction. It suggests that while the company is bound by Illinois law regarding where legal proceedings take place, there is flexibility in how disputes are resolved through arbitration. This could mean arbitration hearings might be held in a location more convenient for Aunt Millies Bakeries, potentially increasing costs for the franchisee if they need to travel.

It is important for potential franchisees to understand the implications of this clause. While the franchisee may prefer all legal matters to be handled in Illinois, the ability for arbitration to occur elsewhere introduces a degree of uncertainty and potential cost. Franchisees should seek legal counsel to fully understand their rights and obligations regarding dispute resolution with Aunt Millies Bakeries.