For a Bambu franchise in Illinois, can the franchise agreement mandate jurisdiction and venue outside of Illinois, according to the Illinois Rider?

According to Bambu's 2025 Franchise Disclosure Document, specifically the Illinois Rider to the Franchise Agreement, any provision that designates jurisdiction and venue outside of Illinois is void. This is in direct conformance with Section 4 of the Illinois Franchise Disclosure Act. This means that if a Bambu franchisee in Illinois were to have a legal dispute with the company that results in a lawsuit, the suit would have to be resolved in Illinois, unless it involves arbitration.

However, the Illinois Rider does state an exception: the franchise agreement may stipulate that arbitration can occur outside of Illinois. Arbitration is a form of alternative dispute resolution where a neutral third party hears both sides of a dispute and makes a binding decision. So, while Bambu cannot force a franchisee into a lawsuit outside of Illinois, they can require arbitration to take place elsewhere.

This protection is further reinforced by another provision in the Illinois Rider, which states that any condition, stipulation, or provision that attempts to bind a franchisee to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void, as per Section 41 of the Illinois Franchise Disclosure Act. This ensures that Bambu franchisees in Illinois cannot be forced to give up their legal rights under Illinois law.