Does the Rider to the Body20 Franchise Agreement prevent arbitration from taking place outside of Illinois?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
The Illinois Franchise Disclosure Act provides that any provision in a franchise agreement that designates jurisdiction or venue in a forum outside of Illinois is void with respect to any action that is otherwise enforceable in Illinois. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, the Rider to the Franchise Agreement for use in Illinois does not prevent arbitration from taking place outside of Illinois. Specifically, the Illinois Franchise Disclosure Act states that while any provision designating jurisdiction or venue outside of Illinois is void, a franchise agreement may still provide for arbitration to occur outside of Illinois. This clarification is included in the Illinois-specific rider to the Body20 franchise agreement.
This means that even if a Body20 franchisee is based in Illinois, the franchise agreement can still stipulate that any arbitration proceedings will be held in a location outside of Illinois. This is an important distinction because it allows Body20 to maintain some flexibility in choosing the location of arbitration, which could be more convenient or cost-effective for the company.
For a prospective Body20 franchisee in Illinois, this clause means they could be required to travel outside of Illinois for arbitration, potentially increasing their legal costs. However, it also means that Body20 is not restricted to arbitrating only in Illinois, which could be beneficial in other ways. Franchisees should consider these implications and consult with a legal professional to understand their rights and obligations under the franchise agreement.