For Brueggers Bagels franchises in Illinois, can arbitration take place outside of Illinois?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in the franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
Source: Item 23 — RECEIPTS (FDD pages 61–335)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, specifically the Illinois addendum, franchise agreements may allow for arbitration to occur outside the state of Illinois. This means that if a dispute arises between a Brueggers Bagels franchisee in Illinois and the franchisor, the arbitration proceedings do not necessarily have to be held within Illinois.
This is an important consideration for prospective franchisees because arbitration outside of Illinois could mean increased travel costs and logistical challenges for the franchisee. It's crucial to understand that while Illinois law governs the agreement, the venue for resolving disputes through arbitration might be elsewhere.
It is also important to note that any provision designating jurisdiction and venue for legal proceedings (other than arbitration) outside of Illinois is void. This distinction between general jurisdiction/venue and arbitration is a key legal point for Illinois franchisees to be aware of when reviewing their franchise agreement with Brueggers Bagels.