For Basecamp Fitness franchises in Illinois, is it permissible for the franchise agreement to mandate arbitration outside of Illinois?

According to Basecamp Fitness's 2025 Franchise Disclosure Document, franchise agreements for Illinois locations can stipulate that arbitration may occur outside of Illinois, despite any provision that designates jurisdiction and venue in a forum outside of the State of Illinois being void, as per Section 4 of the Illinois Franchise Disclosure Act. This means that while a franchisee cannot be forced to litigate a dispute in another state, the franchise agreement can require arbitration to take place elsewhere.

This allowance for out-of-state arbitration could impact Illinois franchisees by potentially increasing their costs and logistical challenges in resolving disputes with Basecamp Fitness. Arbitration outside of Illinois might require the franchisee to travel, hire out-of-state legal counsel, and become familiar with different arbitration rules and procedures. These factors could make it more burdensome for the franchisee to pursue a claim against the franchisor.

It is important for prospective Basecamp Fitness franchisees in Illinois to carefully review the franchise agreement and any addenda related to dispute resolution. They should consult with legal counsel to fully understand the implications of the arbitration clause, including the location of arbitration, the rules that will govern the process, and the potential costs involved. Understanding these aspects will help franchisees make informed decisions about entering into the franchise agreement and prepare for potential disputes that may arise during the franchise term.