For Rayyan Pizza Franchise LLC (Aw) franchises in Illinois, is a clause designating jurisdiction and venue outside of Illinois valid?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
RAYYAN PIZZA FRANCHISE LLC ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT FOR THE STATE OF ILLINOIS
The Rayyan Pizza Franchise LLC Franchise Disclosure Document for use in the State of Illinois is modified in accordance with the following:
Illinois law shall apply to and govern the Franchise Agreement.
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, a franchise agreement may provide for arbitration to take place outside of Illinois.
Franchisee's rights upon Termination and Non-renewal are set forth in Sections 19 and 20 of the Illinois Franchise Disclosure Act.
In conformance with Section 41 of the Illinois Franchise Disclosure Act, any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, for franchises in Illinois, any provision in the franchise agreement that designates jurisdiction and venue in a forum outside of Illinois is void, as stated in the Illinois Addendum. This is in accordance with Section 4 of the Illinois Franchise Disclosure Act. This means that Aw franchisees in Illinois cannot be forced to resolve disputes in a legal jurisdiction outside of Illinois.
However, the addendum clarifies that a franchise agreement may still provide for arbitration to take place outside of Illinois. So while lawsuits must occur within Illinois, Aw could require arbitration to occur elsewhere.
Additionally, any condition, stipulation, or provision that attempts to bind a person acquiring a franchise to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void. This protects the franchisee's rights under Illinois law, ensuring they cannot unknowingly or unwillingly surrender their legal protections.