Does the Browns Chicken franchise agreement allow for designating jurisdiction or venue outside of Illinois, according to the Illinois Franchise Disclosure Act?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Illinois law governs the agreements between the parties to this franchise.
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- Section 4 of the Illinois Franchise Disclosure Act provides that any provision in a franchise agreement that designates jurisdiction or venue outside the State of Illinois is void. However, a franchise agreement may provide for arbitration in a venue outside of Illinois.
Source: Item 23 — RECEIPT (FDD pages 43–202)
What This Means (2025 FDD)
According to the 2025 Browns Chicken Franchise Disclosure Document, Illinois law governs the agreements between the parties to the franchise. The Illinois Franchise Disclosure Act stipulates that any provision in a franchise agreement that designates jurisdiction or venue outside the State of Illinois is considered void. This means that Browns Chicken franchisees in Illinois cannot be forced to resolve disputes in a legal venue outside of Illinois.
However, the FDD notes an exception: a Browns Chicken franchise agreement may still provide for arbitration in a venue 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.
This addendum ensures that Browns Chicken franchisees are protected by Illinois law and cannot be compelled to litigate disputes in a potentially distant or inconvenient forum. Franchisees should be aware of this provision and consult with legal counsel to fully understand their rights under the Illinois Franchise Disclosure Act.