Can arbitration for Aunt Millies Bakeries franchises take place outside of Illinois?

According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, while the franchise agreements are governed by Illinois law, arbitration may occur outside of the state. Specifically, any provision that designates jurisdiction and venue in a forum outside of Illinois is void, but this does not prevent arbitration from taking place elsewhere. This is mentioned in the addendum to 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 related to the franchise agreement would generally be subject to Illinois law, the actual process of arbitration—a method of resolving disputes outside of court—could be conducted in a location outside of Illinois.

This distinction is important because it separates the legal framework governing the agreement from the practical location where disputes are resolved. While Illinois law protects franchisees through the Illinois Franchise Disclosure Act, the ability to arbitrate outside the state could introduce logistical considerations for franchisees, such as travel and associated costs. Franchisees should consider these factors and consult with legal counsel to understand the implications of arbitrating disputes outside of Illinois.

It is also important to note that franchisees cannot waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law, as any such provision is void. This ensures that franchisees retain their legal protections under Illinois law, regardless of where arbitration takes place.