Does the Illinois addendum for Aw franchise allow for arbitration to take place outside of Illinois?

Yes, the 2025 Aw Franchise Disclosure Document includes an addendum for the state of Illinois that addresses the issue of arbitration. According to the addendum, while Illinois law governs the franchise agreement, and any provision designating jurisdiction and venue outside of Illinois is generally void, there is a specific exception made for arbitration.

Specifically, the Illinois addendum states that a franchise agreement may provide for arbitration to occur outside of the state of Illinois, despite the general restriction on out-of-state jurisdiction and venue. This means that Aw franchisees in Illinois could potentially be required to participate in arbitration proceedings in a location outside of Illinois if the franchise agreement stipulates it.

This clause is important for prospective Aw franchisees in Illinois to understand, as it clarifies that while they are generally protected by Illinois law regarding jurisdiction and venue, they may still be obligated to arbitrate disputes outside of the state. Franchisees should carefully review the franchise agreement to determine where arbitration would be held and consider the potential costs and inconveniences associated with out-of-state arbitration.