Does the Bft Multi-Unit Agreement allow for arbitration outside of Illinois?

According to the 2025 FDD, Bft's Multi-Unit Agreement can provide for arbitration outside of Illinois, despite certain restrictions under Illinois law. Specifically, Section 4 of the Illinois Franchise Disclosure Act generally voids any provision that designates jurisdiction or venue outside of Illinois. However, there is an exception carved out that explicitly allows for arbitration to occur outside of Illinois, even if the agreement is otherwise governed by Illinois law. This clarification is included in the Illinois-specific rider to the Multi-Unit Agreement.

For a prospective Bft multi-unit franchisee, this means that while the agreement is likely to be interpreted under Illinois law, they may be required to participate in arbitration proceedings in a location outside of Illinois. This could increase costs for the franchisee, who may need to travel and hire legal representation in the location where the arbitration is held. It is important to note that the U.S. Federal Arbitration Act takes precedence over Illinois law in these matters.

It is important for prospective franchisees to carefully review the Multi-Unit Agreement and any state-specific riders, particularly those related to dispute resolution, to fully understand their rights and obligations. Franchisees should seek legal counsel to understand the implications of agreeing to arbitration outside of Illinois and how it may affect their ability to resolve disputes with Bft.